Here is an alert I sent subscribers this morning:I was stopped out of the SPY short (via SDS) for a small loss. Also exited most shorts. I am NOT taking on any short positions. This is not an orderly pullback. Instead, SPY is showing a strong breakout bar. We'll see if it holds, as conditions... Continue Reading →
Today’s Trade: SDS
I am shorting SPY using inverse ETF SDS. SPY has reached resistance and is very overbought. This is a recipe for a pullback, as it is very hard to make meaningful advances after a big run up and extreme overbought conditions. The trade is low risk and offers a decent edge.
More on the Overbought Status of Apple
Last night I talked about the "rubber band" short setup for Apple. If the stock heads into the close with the same candle pattern that has emerged this morning, I would expect a pullback based on an early "evening star" candle formation. My testing and experience tells me that this type of candle formation is... Continue Reading →
Against the Apple Trend
AAPL is on my bullish watchlish. Why wouldn't it be? It has a great price and volume pattern, and has shows relative strength versus the S&P 500.However, the stock is very overbought. Every one of the measures I use to find "rubber band" setups is off the charts. I will likely short the next move... Continue Reading →
The Simple SPY Strategy
My strategy for trading SPY is about as simple as it gets right now: Short strength and buy weakness.I will look to enter long on a pullback to the 200 day moving average. My "rubber band" short setup triggers on continued strength close to $100.
Monday’s Game Plan and Market Notes
Here is my plan for the market this week. The member only "Trade Report" also included my focus list, consisting of the stocks I plan to trade if we get a pullback.Market Notes:As I noted last night, the cup and handle pattern emerging from a bottom formation looks good. While it may not be a... Continue Reading →
Game Plan for Friday
Here is the game plan for Friday, taken from today's Trade Report:(See this post for a free seven day trial and 30 minute private chat)Market Notes: The market drifted up today on decent (but not great) volume, and is nearing the $85 resistance level. Stochastics are very overbought right now, which leads me to believe a... Continue Reading →
I entered 400 shares of SDS today when my buy limit order was hit at $88.15. I don't do this often, but I am using two different stops for this trade. Half the position has a stop just above $78, while the other half is above the 50 day moving average. The market is very... Continue Reading →
SPY at a Glance
The doji candle printed Friday, which follows a bounce on low volume with overbought stochastics, leads me to believe we'll see a pullback this week.
As noted in yesterday's Trade Report, I went short GLD @90. My stop is around $93 with an initial target in the $84-86 range. The chart I posted Sunday night details the strategy for this trade. GLD has provided an excellent reversal trade the last 11 times stochastics have hit extreme levels.