Paul J Singh

Category: bounce

  • Oil is Setting Up for an Oversold Bounce Trade

    Oil is reaching extreme oversold status. If USO (the oil ETF) drops a few points tomorrow morning, or within the next few days, it will provide a low risk long entry. Note that these oversold bounce plays require short hold times and a tight, logical stop. I would place a…

  • Trade Entry: POT

    In last night’s Trade Report, I highlighted commodities as an oversold bounce setup. I used POT as my primary example and entered today based on last night’s analysis. I bought 300 shares of POT at the open at $176.31. Setup: Oversold bounce setup, within a longer term topping pattern. Stochastics…

  • The Line

    I could not have imagined the QLD trade working better than it has. I took partial profits at $72.88 today (entered at $67.88, as noted in the free trial of the Trade Report) for a $1250 gain (+7.3%). I’ve moved my stop on the remaining position up to my entry…

  • It’s Time

    Things are looking ugly and the sentiment seems to be quite negative out there. I bought SSO at $59.96 and PBR at $70.15. Note to anybody playing a short term bounce. You must be willing to take a small loss. I do not make these types of trades without a…

  • Trades and Thoughts

    All of my oversold bounce indicators are now flashing buy signals. However, I do have some concerns and am not taking on any huge positions here. While I have made some trades to the long side to try and capitalize on a bounce, they are all average or small in…

  • Trade Entry: EWZ Bounce Play

    I bought 500 shares of EWZ at $90.06. Setup: Oversold bounce setup. I had a buy stop set above $90. Volume was great today, and the highs held, unlike that of the Dow. Risk: My stop is set under the recent lows. Target is the $94-95 range. I chose the…

  • Stalking for the Bounce

    I use 6 indicators for deciding when to play an oversold bounce. Today four of them are giving buy signals. If we get a good amount of weakness tomorrow, the fifth indicator will likely give a buy signal as well. For the time being, I am ignoring my watchlist. I…

  • Bespoke’s Short Covering Statistics and Market Notes

    Read this excellent post from Bespoke showing that the biggest gains yesterday came from stocks with high short interest. This, coupled with the average volume of the rise, leads me to believe we have not bottomed and are still in a bear market. However, we still may have a playable…

  • Market Notes and a Trade

    There has been some confusion that I would like to clear up. Some of you think that I am bullish on the market because I am making long play on the S&P 500. Nothing could be further from the truth. This is a short term bounce play within a downtrending…

  • Weekly Spy Chart

    Analysis of the weekly SPY chart leads me to believe the market still has room for a bounce before the next downturn.Key factors in support of bounce:1. Bounce at major price support2. Stochastic oversold crossover developing3. More room to move until resistance reached. Note that each time stochastic has reached…

  • Another Trade Update

    I have decided to take on two more small long positions, BVN and HWAY. Both have handled the bad market well. HWAY is in the medical lab sector, which has been somewhat of a safe haven in recent times. While badly beaten stocks are usually the best short term bounce…

  • This Bounce and Trade Update

    I have received a few e-mails asking whether the bounce is over. I honestly don’t know. However, in my mind, it’s not officially over unless we breach 1378 on the S&P chart. There is still a ways to go down before that happens. I think what we are seeing today…