Paul J Singh

Category: market notes

  • Quick Trade Note

    I bought BBD and CAT. Took partial profit in MTL, SWN and NFLX (short). I’ll have more details later. I am looking to go long energy and steel on a decent sized pullback, and short any of my bearish candidates on strength.

  • DIG Confirmation

    DIG confirmed the bullish tail candle at support. I may add positions tomorrow if there is a slight pullback. I am already holding SWN.

  • My Daily Prep Notes

    Here are my daily prep notes, copied directly from my prep journal: Today’s big move could have been just a post fed reaction or the start of a leg up. Commodities that have been leaders were crushed today, although many closed nicely with long tails and still are just above…

  • Thesis for Fed Day

    Everybody is gearing up for Fed day. There will likely be volatility and an overreaction to the decision. Even if the Street gets what it wants, a positive price move will likely be short lived. As Rob at Quantifiable Edges points out, positive reactons to the fed tend to fade…

  • Market Notes

    I received a few e-mails today asking if today is an “orderly pullback” or the end of the “bear market rally” that I’ve mentioned. Well, it could be both. There is still room to move higher and still remain in bear market mode. However, in the short term, all today’s…

  • Market Prep Notes

    Here are my notes for Monday, copied from my personal journal: It looks like we are in the midst of a powerful bear market rally offering long opportunities. However, no evidence that the primary trend has changed. Wait for a pullback for long entries. Markets are oversold with SPY showing…

  • Today’s Thoughts

    Relax guys, HAL was only up 1 percent today. Considering what the market did, I’d say I still have a good chance of making some money on this short play. You can say “I told you so” if I exit with a loss. For those that missed it, here is…

  • The Daily Prep Log

    I cut and paste notes from my personal daily prep log: Bullish consolidation after big move. These types of moves have been a precursor to sell offs in recent past. This indicates a classic bear with strong rallies. Consolidating gains on low volume-bullish. However, until S&P 500 breakout over resistance-1400,…

  • Re-Load?

    I’m looking to reload some short plays like MON.

  • Bespoke’s Short Covering Statistics and Market Notes

    Read this excellent post from Bespoke showing that the biggest gains yesterday came from stocks with high short interest. This, coupled with the average volume of the rise, leads me to believe we have not bottomed and are still in a bear market. However, we still may have a playable…

  • No Trust

    I trust this rally about as much as Mrs. Spitzer trusts her man. I may even put on a small “fade” position. We’ll see how events unfold later in the day. Did anybody else notice the new high/low and advance/decline ratios yesterday? Surprising to see so much red on a…

  • It’s a Matter of Perspective

    Well, after all the hysteria, today was a ho-hum day. No capitulation and not many major breakdowns in stocks that I watch. Instead, most of the stocks on my watchlist traded within support and resistance ranges. Even the stocks that made 5 percent plus losses, like DECK, are within the…

  • Sector Volume and Market Notes

    One of two things will happen this week. Either we get a major decline or that capitulation move that everybody has been waiting for will lead to a nice bounce. I have no idea what will happen, but I am positioning myself for either outcome. Here is a list of…

  • 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…

  • Today’s Trade: GGB

    I bought 200 shares of GGB, a steel stock, at $31.30. I bought 200 shares of JOYG at $67.15. I lightened up on my DECK and CPLA shorts. I’ll get more in depth on these trades later today. I have enough longs now and will look to add shorts on…

  • The Breakout Scan is Broken

    Only 15 stocks made my breakout scan, and of those, three of them were ultrashort ETFs. Three of the stocks on the list interest me. Take a look at their charts and try to figure out the breakout plays.

  • 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…

  • Trading SPY and Stochastics in a Bear Market

    If recent history is any indication, the next time the stochastic indicator hits an extreme oversold reading of less than 20, it will be time to buy the S&P 500. Since October the SPY has hit this level 6 times and made at least a three point gain in 5…

  • SPY and Stochastics

    I’ll have more on this tonight, but keep an eye on the SPY and the stochastic reading (set at 5,3,3). Recent history suggests that an extreme oversold reading will be an excellent short term trade.

  • Market and Trading Notes

    The market is clearly in “no man’s land”, as we wait to see if the current market consolidation is going to resolve by printing a bottom or taking another leg down. While I remain bearish, until the market proves itself otherwise, I am seeing quite a few bullish setups. At…

  • Classic Bear Market Action

    While I try to stay away from the chatter of market pundits, I do like to keep an eye on what a few select bloggers and “market gurus” that I respect have to say. What surprises me today is that I am hearing, even from those who I respect, that…