Definite Change in Market Character

Today marked a change in character for the market. SPY has now convincingly mounted the 50 day moving average, the volume pattern shows accumulation, RSI is steady above 50 and the price bar is of the "breakout" variety. I'll be looking for a pullback to initiate longs.

Short Setups in the Even of a Bounce

If the market gives us a multi-day bounce, I would like to use it to initiate a few short positions. I am currently watching broken stocks that are bouncing towards resistance levels. ALXN is a good example. A few days of bounce would put it near the 50 day moving average and broken trendline. This... Continue Reading →

Energy Looks Good: PBR

Energy stocks are showing good accumulation patterns while coming off bottom price patterns. Of the energies that I monitor, PBR is showing the best relative strength compared to the sector. It is at 30 day highs.  I'd like to enter on pullback to support.

Trade Setup: USO

As noted yesterday, I entered USO at $28.32.Setup: Oversold bounce, possible bottom formation. Stochastics are extremely oversold, which has provided for quick counter trend trades with this stock.Risk: My stop is under price support around $26.50, with the 50 day moving average providing the initial target at $33.50. This gives me a 3:1 reward to... Continue Reading →

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