I entered four positions today, 3 shorts and one long. My market bias has turned bearish with recent distribution (price down stong oh high volume) on SPY.WYNN is showing signs of topping, though it is stronger than the market. Recent volatility and stronger volume to the down side make this an attractive "anticipatory short" with... Continue Reading →
Short Entry: MON
I went short MON as it pulled back to resistance levels via a bearish flag pattern.
Is FUQI Ready for a Fall?
Momentum stocks usually give ample warning before taking the inevitable fall. Is FUQI showing signs?
5 Great Short Setups
The following short setups all feature one of my favorite short setups: consolidation post downtrend featuring a negative volume pattern (distribution). A continuation of downtrend is expected.VCLK, RS, SNDA, AMAG, ATK
RIMM Showing Bear Flag and Distribution
RIMM is at the top of my focus list for shorts. Notice the bear flag formation and bear flag that has formed under the 50 day moving average. The volume pattern is also showing distribution, with heavy volume on the recent drop.
Another Stock Showing Strong Distribution: WYNN
WYNN was on the long list for quite some time, but has now reversed and is the perfect short setup. A bear flag has formed, with volume that's showing distribution. Many like to wait for price to breakdown out of the flag pattern. I prefer to enter early, when price is at the to of... Continue Reading →
Game Plan For Monday
Here is my detailed plan for Monday and the coming week, as sent to subscribers in today's Trade Report:May 18, 2009Market Notes:The market has pulled back close to the entry point we've been watching (87-88). The pullback is not ideal, as price has not pulled back in an orderly fashion. Also, while volume is not... Continue Reading →
X Short Setup
A few more days of bounce would cause X to seup as a nice bear flag short candidate:
The New Edition of the Trade Report (July 16)
In the free Wednesday edition of the Trade Report, I discuss:My QLD entry, this crazy market and relative strengthA few recent positions, X, ILMN and JOYGBearish engulfing and flag setupsThe Weekly WatchlistDiversification by way of setups.Tuesday ReportMonday ReportYes guys, I do know the difference between "addition" and "edition" (this is for those who receive the... Continue Reading →
Anatomy of a Trade: WYNN
I shorted 500 shares of WYNN 8 days ago at $85.03 based on a "dirty bear flag" setup. While technically not a bear flag, the stock had broken support on was pulling back up to the resistance point. Volume distribution pattern was bearish, meaning heavy down days with low volume up days.That same day the... Continue Reading →