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 stop under the 200 day... Continue Reading →

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 are oversold and the stock bounced off... Continue Reading →

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 point, and have had thoughts... Continue Reading →

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 low risk stop on place.

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 position size. Why am I... Continue Reading →

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 Brazilian ETF over the US markets for... Continue Reading →

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 am only playing the indexes... Continue Reading →

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 market. Until the indexes can... Continue Reading →

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 oversold levels and crossed we've seen... Continue Reading →

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