The iShares Russell 2000 Index (NYSEARCA:IWM) has a beautiful bull flag on the daily chart. Most investors would look at that and think it is going much higher. However, they could possibly be getting faked out hard. The flag pattern has lasted for nine days with no breakout yet. Once a bull flag has matured it needs to rip higher quickly. If it does not make its move, failure is likely. When a bull flag fails, the resulting opposite move (in this case down) is epic.

How do you know if it fails? Any daily close below the consolidation pattern low ($119.00) would signal failure. Boom to the downside it would go. Probably falling to $108.00 before finding major support. This would be a 10% drop.

eBay Inc (NASDAQ: EBAY) reported earnings last Wednesday, July 20, after the bell and continued on its recent journey up to close at $30.49 on Friday, a 36% increase in less than a month! $EBAY is very overbought on all timeframes and is hitting significant resistance at the upsloping trend line you see on the daily chart below. For all you Gann enthusiasts, it is also hitting a critical Gann level here. I would be very surprised to see $EBAY go much higher without a decent pull back first. Note,$EBAY is now at all-time highs. I've found you need to be very careful making trades at all-time highs or lows because there is no previous data in the area to base things on. For this reason, I may wait until I see a topping signal before I short $EBAY, but if I do decide to enter a short here at $30.50 or higher, I would risk about a $1.50, meaning I would exit the trade, at a loss, at a daily chart close above $32. Downside target is at the moving averages around $25. 

Great Basin Scientific Inc (NASDAQ:GBSN) is setting up to likely pop big next week. A compilation of oversold, value, positive news, light sell volume and the right micro cap environment create the perfect situation at the perfect price for traders. The stock has fallen six straight days from $1.45 to a close this past Friday at $0.82. The reason for this fall had little to do with bad news and more to do with weak handed traders selling. These momentun traders had bought on anticipation of a conference call the company had two weeks weeks ago. While positive, it was a sell the news event.

The company has had lots of good news in the last few months, including major news that popped it from $1.70 to $3.65 in a single day. In addition, the company has secured $75 million in financing and looks set to grow substantially in the next year.

Whirlpool Corporation (NYSE:WHR) reported earnings this past Friday, beating expectations. The stock rose 2.68% to $187.61. Recent trading activity over the last three weeks has seen the stock rally sharply from $152 to $188. This is a whopping 23% price move. While everything seems rosy with Whirlpool, the chart suggests a sharp drop is on the horizon. First, the stock is extremely overbought on every metric including stochastics, RSI and MACD. Second, the stock slammed into a HUGE trend line that will act as resistance.

The pull back is expected to begin this week and take the WHR back to $172.00. This would be approximately a 10% drop. I am looking to short the stock or buy puts as early as Monday morning.