While SPY is oversold, I would like to see more weakness before entering long based on oversold conditions. The chart below shows three great bounce entries:
Charts: AMLN, BEAV, WYNN, BHP
I entered four positions today, 3 shorts and one long. My market bias has turned bearish with recent distribution (price down stong oh high volume) on SPY.WYNN is showing signs of topping, though it is stronger than the market. Recent volatility and stronger volume to the down side make this an attractive "anticipatory short" with... Continue Reading →
Today’s Trade: PCU
I entered PCU as an oversold bounce play as it falls to support.
Oversold Bounce Setup: GLD
My recent GLD entry was based on the oversold bounce setup. I only took a 1/3 position today, and will add to it if GLD nears the 50 day moving average, which would offer me a better risk ratio.
GS Nearing Bounce Level
GS is oversold and nearing a strong area of support. If the stock drops a few more points today, an oversold bounce entry would provide a low risk trade.
Today’s Entry: JEC
I went long JEC today as an oversold bounce setup. Stop is fairly tight.
I entered SDS today. It is extremely oversold and RSI shows a positive divergence. The last 3 similar states have lead to decent, tradeable bounces.
Anatomy of a Successful SPY Trade – Moving Average Oversold Bounce Setup
This setup was given to Trade Report subscribers. SPY was marked as a "bounce trade" setup on Friday as it neared the 50 day moving average and became short term oversold using stochastics as the oversold indicator. I entered Monday morning on confirmation. The stop was set under the 50 day moving average, with an... Continue Reading →
Game Plan and Free Trade Report
Here is my game plan for the rest of the week and free trade report. Watch for the key SPY support levels. A continuation of the down move would setup some nice "oversold bounce" trades.http://docs.google.com/Doc?id=d5z8q8w_1296ffhsmdfnSeptember 2, 2009Note: I will not have access to a computer Thursday and Friday while on vacation, so there will be... Continue Reading →
Speculative Entry: SRS
I took a small positions in SRS today. It is very oversold (meaning real estate is overbought) and, if history is a guide, should bounce soon. I am using a tight stop with a target near the moving average.