Sectors with Bottom Formations

No matter how bearish your fundamental thesis is on the following sectors, it's hard to deny that price and volume are showing bottoming formations in financials, casinos and real estate.Here is what I wrote about these sectors in the Trade Report to start the week:I have narrowed my list of stocks this week, focusing more... Continue Reading →

CAL setup

I mentioned earlier today that I entered to airline stocks. Both CAL and UAUA have similar setups. CAL shows a classic bottoming formation. Note the volume pattern. Entry close to the moving average is ideal, with the upside target at the first sign of strong resistance. I may buy more tomorrow on early morning weakness.

Why Do You Like DUG

Here is an e-mail I received today:MS,Why do you like DUG so much? It looks to me like you are trying to pick a top in oils, just like you are trying to pick a bottom in SSO. Don't fight the trend man. SSO is going lower and DUG is too.Before I get to the... Continue Reading →

QID Pattern

We've got a nice bottoming formation forming in QID, which is short the Nasdaq. I took a small position on the pullback (Nasdaq strength) today, and may take a bigger position on either more of a pullback or break over resistance.I am using this as a hedge on any long positions I may take. However,... Continue Reading →

Today’s Trade Entry: ACH

I bought 300 shares of ACH at an average price of $43.08. I usually don't make long entries on beaten down stocks or sectors, but China stocks are due for a bounce and today's strong breakout offers the type of volume catalyst that could be good for a few points. I like the fact that... Continue Reading →

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