QID Pattern

We've got a nice bottoming formation forming in QID, which is short the Nasdaq. I took a small position on the pullback (Nasdaq strength) today, and may take a bigger position on either more of a pullback or break over resistance.I am using this as a hedge on any long positions I may take. However,... Continue Reading →

Homebuilders are Hard to Ignore

It's tough to ignore the strong move in residential construction, aka, homebuilders. While my head tells me to stay away, the charts tell me otherwise. For months I have been using bounces in the sector to reload shorts, but not this time. There is something different about this bounce. Take a look at the chart... Continue Reading →

Chart: TOL

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 →

Breakout Chart: XOM

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 →

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