Paul J Singh

Category: oversold

  • Another SPY Chart

  • Trade: SDS

    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…

  • Today’s Trade: DUG

    As noted to Trade Report subscribers earlier today, I entered DUG at $21.19.  The inverse oil services ETF is near strong price support and is very oversold (oil is overbought).  I am using this trade to short the oil sector. Setup: Oversold bounce.  Stockchastics are way oversold.  The last 6…

  • Oil Trade Exits

    I exited both of my oil trades today for nice gains. Whereas my entries were based on an extremely oversold oil market, today’s exits were based on overbought readings. Price is nearing resistance levels while stochastics are nearing extreme levels. More strength would provide a good short entry.

  • Buying and Sellng Extremes: The SKF Trade

    My strategy over the past few months has been to be patient and wait for extreme conditions to surface before making both long and short entries. A good example of this type of trade is the SKF position I entered yesterday (detailed in the trade report). Here are my entry…

  • The RSI Effect

    As long as the lows hold, the bottoming thesis is in effect. I have focused on more short term 3-6 month charts lately, but here is a two year chart showing the power of the oversold RSI, even in a longer term down trending “topping” market.

  • Today’s Trades: X and K

    I just took two small long positions today at current lows. 100 shares of X at $53.46. 100 shares of K at $55.38. These are small positions with tight stops. I am not risking more than $600 on these trades. The idea is take a small, *expected* loss, with the…

  • Trade Entry: POT

    I bought 150 shares of POT at $150.62 (trade posted on blog Friday morning). The Setup: Oversold Bounce. Extremely oversold stock within bearish downtrend (topping formation). Stochastics extremely. Price is at March support levels. Risk: Stop is now at entry level. Initial target of $160 hit. Target for remaining 75…

  • Trade Entry: NOV

    I bought 350 shares of NOV at an average price of $60.54 (trade posted on blog Friday morning). The Setup: Oversold Bounce. Extremely oversold stock within bearish downtrend. Stochastics extremely oversold in the 7-10 range. Price is at February-March support levels. While the lows have not been reached yet (50),…

  • Oil is Setting Up for an Oversold Bounce Trade

    Oil is reaching extreme oversold status. If USO (the oil ETF) drops a few points tomorrow morning, or within the next few days, it will provide a low risk long entry. Note that these oversold bounce plays require short hold times and a tight, logical stop. I would place a…

  • Trade Entry: POT

    In last night’s Trade Report, I highlighted commodities as an oversold bounce setup. I used POT as my primary example and entered today based on last night’s analysis. I bought 300 shares of POT at the open at $176.31. Setup: Oversold bounce setup, within a longer term topping pattern. Stochastics…

  • Quick Trade Update: QLD and Commodity Shorts

    I took partial profits in a few of my commodity related shorts and entered QLD this morning. I mentioned QLD in last night’s trade report. As noted in the report, the Nasdaq has recently held up better than the S&P 500. Recent free trade reports: July 15 July 14

  • It’s Time

    Things are looking ugly and the sentiment seems to be quite negative out there. I bought SSO at $59.96 and PBR at $70.15. Note to anybody playing a short term bounce. You must be willing to take a small loss. I do not make these types of trades without a…

  • The Six Indicators

    I am getting a lot of questions about the 6 indicators I use to measure market extremes. Most seem to think I am talking about stochastics, TICK, T2108 and a few others. It’s not that simple. I’ve created the indicator I mentioned, and 4 of them are combinations of some…

  • Trades and Thoughts

    All of my oversold bounce indicators are now flashing buy signals. However, I do have some concerns and am not taking on any huge positions here. While I have made some trades to the long side to try and capitalize on a bounce, they are all average or small in…

  • Trade Entry: EWZ Bounce Play

    I bought 500 shares of EWZ at $90.06. Setup: Oversold bounce setup. I had a buy stop set above $90. Volume was great today, and the highs held, unlike that of the Dow. Risk: My stop is set under the recent lows. Target is the $94-95 range. I chose the…

  • Stalking for the Bounce

    I use 6 indicators for deciding when to play an oversold bounce. Today four of them are giving buy signals. If we get a good amount of weakness tomorrow, the fifth indicator will likely give a buy signal as well. For the time being, I am ignoring my watchlist. I…

  • Sectors Analysis

    The 20 most oversold sectors: The 20 most overbought sectors How do I use this information? In the overbought sectors, I look for charts where stocks are near highs and wait for a healthy pullback. In oversold sectors, I look for stocks oversold near support that have good risk-reward potential.

  • DUG Divergence

    Take a look at the DUG chart below. Notice that RSI has made a higher low while price action has made a lower low. The ETF, which is short oil and gas, is also extremely oversold. I took a small position this morning.

  • MOS Chart

    Long time readers know one of my mantras is to keep on doing it until it ceases to work. Once I see a pattern emerge, I will continually go after it. Let’s take a look at the MOS chart to illustrate this point. Over the past 6 months, buying the…

  • Trade Update: SPY, ICLR, DECK

    I bought 200 shares of SSO at $65.84. For those that didn’t read last night’s post, this trade is based on the oversold stochastic strategy. Not sure if I am in too early, as the read line is still above 20. However, the black line, which I focus on, is…