Trading Stocks & Personal Development: Making the Complex Simple.
This post from August 2007 offers some timely advice on shorting momentum stocks:Those of you familiar with my trading style know I rarely short high flying stocks. While it seems logical to go against a stock that is overextended, this type of trade generally takes on too much risk. Stocks tend to trend longer than... Continue Reading →
I bought 300 shares of SSO at $62.23. SSO is 2X long the S&P 500.You may be wondering why I would go long an index in a downtrend, which I rarely do. The answer is quite simple. I am getting a low risk entry on a risky trade. Huh?What I mean by low risk entry... Continue Reading →
Frequent e-mailer and one of my most loyal readers, Hal B., asked about a bullish divergence setup in AAPL. I don't have annotation capabilities from my current locale, so bear with me as I explain the chart.I do see a slight divergence that might be used for an extremely short term play. We measure the... Continue Reading →
I've been very busy, so I haven't had a chance to update my trades. As stated in the comments section this morning, I unloaded a bunch of shorts and entered a few longs. I would like to add some more shorts on bounce.My bias is still to the down side, but I don't want to... Continue Reading →
As noted in the previous post, I took a position in TOL today. Those familiar with my trading style know I don't tend to buy downtrending stocks. However, I noticed some mean looking divergences that lead me to believe their might be some institutional buying at the current levels. At the least, I'd expect a... Continue Reading →
Those of you familiar with my trading style know I rarely short high flying stocks. While it seems logical to go against a stock that is overextended, this type of trade generally takes on too much risk. Stocks tend to trend longer than they "should" due to market psychology and short squeezes.However, there is one... Continue Reading →
While GOOGLE (GOOG) made my long position trading watchlist (entry at 50 day moving average), I could not help but notice the startling RSI, OBV and stochastic divergences that have formed at the current new highs.For those who don't know, a negative divergence forms when price increases while the indicators decrease. As you can see... Continue Reading →
Yesterday, I sold 200 shares of AAPL at $108.25 (entry at $101.25) for a $1400 (+6.9%). I had moved my trailing stop when the stock hit $110. I have a feeling a long tail is going to print today, followed by another move up. I hope I didn't sell too early using too tight of... Continue Reading →
Exxon Mobil Corp. (XOM) broke out to new highs on above average volume. A low volume pullback to the prior highs, just under $79, would normally provide a good entry point.While the breakout is bullish, there are some concerns for this stock. Notice the negative divergences in both RSI and stochastics. One would expect new... Continue Reading →
EWO, an Austrian ETF, is looking eerily similar to the way it looked at this time last year.The stock had broke out of a base in late '05, pulled back to the breakout point, and made a move in early '06 that measured 6 points from breakout. A negative RSI divergence formed and the stock... Continue Reading →
Paul J Singh 