I went short AAPL today. Overbought and lots of space between price and moving average.
I like SPY as overbought short setup. Overbought and into resistance w/ little consolidtaion or pullback.http://chart.ly/qdyyrw
I am short ACI at $28.05 based on the extreme overbought readings in stochastic, along with extended price action. This coal setup was featured in the Trade Report last night, for short on strength at the open.
PCU and FCX are on fire. Technically, they look great on a pullback to support for long entry. However, they are very extended. Take a look at the distance from the 50 day moving average. I think we are due for a snap back. I will likely short on more strength.
I took a short position today in SKX. The stock is extended and today's indecisive price movement on high volume leads me to believe a pullback is in order.
While GOOG is on the bullish focus list and I am high on the setup on pullback, it is very overbought. The two period RSI is off the charts extreme. I took a small speculative short position. My stop is at $526. Target is $510. This gives me 2:1 risk ratio.Keep in mind that GOOG's... Continue Reading →
AMZN has been a great "extremes" trade (stochastics 90+ and extended price) for the past few months, both as a long and short. The stock is again extended, and offers a low risk short opportunity. Entry here with a tight stop offers a favorable a reward to risk ratio. Allow only for a small loss... Continue Reading →
Last week I posted about APPL showing signs of pulling back, but still being a tough read. As Report members know, I decided to short on the once it made a thrust to $170. Overbought conditions, distance from the 50 day moving average and a negative divergence in RSI made it a decent counter trend... Continue Reading →
The market and leading stocks are breaking out after a short consolidation period and overbought readings that are still extreme. Due to the extreme overbought readings, I'm taking a few "speculative" shorts. However, they are done with caution and small positions size.The idea behind these trades is to expect a small loss. If the trade... Continue Reading →
Here is the strategy I laid out for subscribers to start the week:http://docs.google.com/View?id=d5z8q8w_1205gxt3rxp3 The market is in a very bullish made right now. As we can see on the SPY chart, RSI confirms the recent breakout over resistance, as it makes new highs along with the index. The volume patterns shows there's some real velocity... Continue Reading →