How to Trade During Market Selloffs and the Power of Support

The one key element for traders looking to "buy the dip" is support. Support levels are powerful because this is the level where we see buying interest due to previous buying, trend lines or moving averages.Even during market selloffs where the drop seems to have no floor, support can have a powerful impact. Let's study... Continue Reading →

Key SPY Support Level

SPY is nearing converging support levels and oversold stochastic levels. A low risk opportunity may present itself near the 50 day moving average.Take note that the volume pattern is showing distribution.

SPY Chart Analysis

I posted the SPY chart that I sent to subscribers last night without any annotations and a few blog readers weren't quite sure what the chart meant. The key is the two line drawn and support and resistance. If SPY gets close to the top line (around $93-95), that sets up a great short entry.... Continue Reading →

2 Low Risk Real Estate Short Entries

If looking to get short on the current or future bounce, SRS offers two low risk and easily managed entries.The leveraged real estate ETF is currently right at moving average support. An entry here with a tight stop under the moving average provides low risk If the top is placed at $64 and the target... Continue Reading →

GLD Entry and Trade Report

In the Monday morning edition of the Trade Report, I mentioned that I was bullish on the gold sector and was waiting for a pullback. A few readers wanted to know at what levels I would consider entering.Let's take a look at the GLD chart. When looking for support and resistance levels, I want them... Continue Reading →

The Power of Strong Support

I outlined my entry in APA on Friday. Today the stock is up over 3 points on a negative day for the market (as of noon eastern time). This is a good example of the power of strong support.

Today’s Trade: EWZ

I bought 200 shares of EWZ, the Brazil ETF, at $91.61.Setup: Bullish Flag post Breakout-Breakout Pullback. The stock pulled back to the top of the breakout level, which is also where it broke resistance. Recent volume pattern is strong and obv has increased as stock has pulled back from breakout. As a plus, all things... Continue Reading →

6 Stock to Buy on a Dip

The market is now in extremely overbought territory, which is why I actually deployed a short today (DHI- a housing stock at the top of it's downward trend channel). It's seems like ages since I've shorted a stock, and believe it or not, I love shorting!Along with my primary long watchlist, which consists of weaker... Continue Reading →

Trades: AAPL and NOV

I sold 150 shares of AAPL at $125.84 (entry at $121.75) for a $613.50 gain (+3.3%). I noted the exit in the comments section of my last post.At the close, I sold 200 shares of NOV at $116.11 (entry at $109.64) for a $1294 gain (+6.0%).Both trades were pullback plays off of extreme weakness. While... Continue Reading →

Trades: MS, AAPL, NOV and CROX

I covered my entire 800 share MS short, half yesterday at $63.05 and half today at my target, $60.10 (average entry price was $65.89). That comes out to a $3455 gain (+6.4%).I have not unloaded CROX yet, despite currenly being about 5 points down (-$2000). I've decided to use a very loose stop, just under... Continue Reading →

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