Category: dead cat bounce
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Short Setup: ACI
Another day of bounce would setup the perfect short in ACI:
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Exiting Apple Short Trade
I exited the remaining position in the AAPL short trade at $37.44. The stock is now near a decent support area and may be set to bounce. Keep an eye on the bounce. If it’s on weak volume, we’ll get another good short opportunity via a “dead cat bounce”. Right…
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SPY at a Glance
The doji candle printed Friday, which follows a bounce on low volume with overbought stochastics, leads me to believe we’ll see a pullback this week.
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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…
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How Can You Not Bet Against Gold?
I am hearing a lot of bullish chatter amongst bloggers and media about the near future for gold. This seems to always happen when a former leader (momo stock) breaks down and prints a dead cat bounce. I love it when this happens. Let’s ignore the talking heads and take…
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Quick Thought: The Commodity Bounce
Many broken commodity plays, like the ag sector, have made big bounces today (as of 11:35 AM ET). Keep an eye on volume. One of two things is going to happen: 1. A low volume bounce which will be a “dead cat” signal. If this happens I will intitiate shorts…
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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…
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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…
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Short Term Capitulation?
I have a feeling we might be in the midst of short term capitulation. Things look really bad, many former leaders are getting abused and it is really tough to buy right now. Note that does not mean we are going to see the uptrend resume. If we get a…
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Quick Trade Update
I took small long positions in CF (92.05), AAPL (179.80), FSLR ($235.25) and RIG (132). The first three were so oversold that I decided to buy after they started to bounce off their lows. If we get the holiday bounce everybody is waiting for, these stocks should do quite well.…
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Trade Notes
I exited DCO at 42 (entry at$38.10) for a $1170 gain (+10.1%) . The setup was an earnings breakout-pullback. I will re-enter on a pullback to $40. I exited 200 shares of NOV at $67.35 (entry at $63.74) for a $722 gain (+5.7%) . This was an oversold bounce play…
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Trade Notes
Today’s bounce may present a good short entry. I just went short VMW (89.10) as it nears resistance (former support), TOL (21.46), and took small positions in ultrashorts QID (40.85) and SDS (55.56). On the long side, oil stocks are extremely oversold. I took small long positions in NOV (63.74)…
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SGR Lookin’ Like a Dead Cat
Shaw Group Inc. (SGR) is a former high flying stock that seems to have lost its mojo. In July, the stock gapped up after a long uptrend, but could not hold the gap level. It now looks like the gap was an “exhaustion gap“, which usually comes at the end…
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If You Feel Like Throwing up, Go Against Your Better Judgment
I subscribe to the theory that when things are at their worst, when you have that knot in your stomach that makes you want to throw up, and you feel like there’s nothing but gloom ahead, that is the time to do the opposite of what your emotions are telling…
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Today’s Trade: DXPE and TSL
I bought 350 shares of DXPE at $47.55. This is a breakout-pullback play. The stock broke out and is pulling back on diminished volume. I will likely place a stop at $44, and my initial target is $52.50, making for a 3:5 risk to reward ratio. Note that I’ve been…
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It’s a Small World – ETF Style
It’s amazing how similar almost every single market looks, whether we are talking sectors or countries. Let’s take at some country ETFs. I’ll start off with Brazil, since EWZ is one of my favorite trades. It is not surprising that we see a death defying drop followed by a low…
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Get Ready to Short the Bounce
Hopefully this bounce can last another day or two. I will use market strength tomorrow to deploy a few short plays. A lot of sectors are setting up the same way, so I’ll stick to QID and a few select sectors and stocks. Financials, commodities (not oil), tech and China…
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How I will play this market and Trades
Here are the notes I wrote to myself last night: Control your emotions. Do not feel the need to make any big bets or predictions. Do not feel the need to make money out of this fall. It’s okay to make some bets, but make sure to use a small…
Paul J Singh 