Paul J Singh

Category: market notes

  • Better to Play the Second Bounce

    It’s easier to play the second bounce, as opposed to trying to time the first. If you take a look at the chart above (SPY vs T2108), it is obvious that there is no sure fire method in timing the bottom of a correction. The T2108 indicator (via telechart) measures…

  • Sectors that are Working in this Volatile Market

    Two sectors that have withstood current volatility and selling pressure are Education Services and Aerospace/Defense. A few stocks from these sectors of particular interest are CPLA, EDU, BEAV and ATK. CPLA Chart: BEAV Chart:

  • 10 Rapid Fire Trading Thoughts

    1. Trading earnings breakouts has been a highly effective strategy during the 4th quarter thus far. 2. In the financial area, stick with Goldman Sachs and forget the rest. 3. I’ve been holding trades longer than usual over the past few months. This is the best way to play a…

  • Short Candidate: Honeywell

    Due to the fact that we have been in a solid uptrend, I haven’t pointed out many short candidates over the past few months. While the market is currently in a state of flux, I am still hesitant to fire off a big batch of shorts since we are still…

  • Top Performing Focus List Stocks

    Here are today’s top performers from my focus list. Many are either post earnings movers (a la AKAM, GLDN, VMW, WX, ISRG, YUM) or industrial/chem/ag related stocks, which provides a clue as to what is working in the current market. I have marked a few of these as buys on…

  • 6 Resilient Stocks to Trade on the Long Side

    My last post laid out a game plan for trading in queezy markets, not unlike the one we are currently facing. Here are six stocks from my focus list that satisfy the third point, which tells us to monitor stocks that are doing well in the face of a strong…

  • Game Plan for Trading a Queezy Market

    Trading after strong distribution days, which have the potential to change the nature of the market, isn’t easy. For me, it’s the toughest period to trade. Since we don’t know if this is a correction or a change in trend, we must be ready for either event. I do this…

  • Trade Update

    Over the past couple of days, I’ve been stopped out of PCU ($127.90), OII ($76.66), BLUD ($35.76) for losses. I bought 300 shares of ISGR on Friday on a dip of the earnings breakout, at $267.44. I sold half my position today at $278 and am holding the rest. Still…

  • Will the Market Post Another Distribution Day?

    I have to admit I am a little surprised by today’s action. Due to Google’s glowing results, oversold conditions and the the historically postive results for October 19th (since Black Monday), my expectations for today leaned to the bullish side. With about 2 1/2 hours left before the close, it…

  • Is this Oversold Market Ready to Bounce?

    Let’s take a look at a chart of the S&P 500: What jumped out at me is that the index has, without fail, bounced when reaching oversold conditions in stochastics and RSI. We’ve reached that level again, and as candlestick officionados will point out, the last two days have printed…

  • AAPL’s New High a Market Tell?

    After Thursday’s distribution day, I noted that we need to focus on leading momentum stocks to gauge the market’s health. If these stocks could mount Thursday’s losses and get back to new highs, it would signal a new leg to the bull run. AAPL is one of the first leading…

  • Today’s Focus

    I’m using weakness today to buy oil related stocks. Also on the radar are industrial chemicals, farm, metals and some select tech stocks. Basically, stocks from the strong sectors I pointed to on Sunday. I’ll have more details later today.

  • 10 Sectors to Play if You are a Bull

    Here are the best performing sectors over the past week. If we get a signal to go long, these are the sectors you want to put in play. On Thursday I put forth a short strategy that attacks momentum stocks that are extended, handled Thursday’s correction poorly, and fail to…

  • Watch Leading Momentum Stocks for Market Tell

    Well, so far we have not seen any follow through on yesterday’s decline. I’m still not convinced it was a one day thing, so I’ll be watching momentum names that have lead the market over the last few months very closely. Take AAPL. While it’s bounced nicely this morning, we…

  • Play this Market by Preparing for All Possibilities

    Was this a temporary correction, the start of a deep correction, or the end of the line for the bull market? That’s the question everybody is asking, and nobody knows (no matter what they tell you). I’m not about to make a guess. Instead, I’m preparing myself for whatever comes…

  • Where is the Dip?

    Like many traders, I’m having a hard time finding entry points. CPLA is a good example of most stocks on my focus list. The stock that is extended and just won’t quit going up. There are three logical ways to play this market: 1) Jump in now, which is probably…

  • 5 Sectors to Watch this Week

    I will be watching the following sectors closely this week: Industrial Metals recently broke out to new highs and is now consolidating gains. I am looking for low volume weakness in the sector’s strongest stocks, which include FDG, BOOM and BBL.

  • Today’s Focus List Top 25

    On days the feature broad based selling, like today, it is a good idea to keep tabs on the stocks that ignored market weakness. Today only 33 of the 120 stocks in my focus list made positive gains. Here are the top 25:

  • The Bidu Trade: Luck or Skill?

    KR asked the following question about my BIDU trade: “BIDU was based on luck or trading secret? Other than oversold indication at Stochastic, I did not see any reason to jump in before seeing some more weakness. What was the reason to jump in Y’day for you?” Since I started…

  • Strategic Flexibility is a Key to Trading Success

    Your strategy has to be flexible enough to change when the environment changes. The mistake most people make is they keep the same strategy all the time. They say, “Damn, the market didn’t behave the way I thought it would.” Why should it? Life and the markets just don’twork that…

  • Today’s Trades: AEM, FWLT, NILE and FCX

    I sold 300 shares of AEM at $50.35 (entry at $46.85) for a $1050 gain (+7.4%). I sold 200 shares of FCX at $107.50 (entry at $105.25) for a $450 gain (+2.1%). I sold 200 shares of FWLT at $133.32 (average entry $127.88) for a $1088 gain (+4.3%). Update (9:45am):…