Paul J Singh

Category: oversold bounce setup

  • Possible SKF entry

    A little more bounce would provide a low risk entry in SKF, which gets you short financials:

  • 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.

  • Trade Entry: POT

    I entered POT today as a bounce play at $125.10. As I have been preaching, postion size is small. Reasons for entry:1. Stochastics oversold2. Extreme weakness today3. Positive divergences in RSI and OBV (indicators are making higher lows while price is a lower low). Risks:1. Continuation of downtrend2. Negative market…

  • Postive Divergence in Apple

    Today I entered AAPL at $124.92. I like the way the stock has handled the retest of the recent low, holding the level and printing positive divergences in a few indicators. While the primary trend is down, I expect that resistance will be tested. The range marked on the chart…

  • Trade Update: AAPL and X

    I took two long positions today, AAPL (124.92) and X ($85.53). Both are oversold and will do well if the market bounces.

  • Today’s Trade: USD

    Wow, what a morning. As I noted in the Trade Report last night, it is not the time to make any big bets. However, today’s reaction may provide some good opportunities. I came into today with very few setups. One was to buy USD on weakness based on the oversold…

  • Final Exit in Pot Trade

    update (11:57am): typos fixed. Thanks to those who pointed them out. I exited what was left of my POT position at $159.89. The final details of the trade. 100 shares of POT bought at $139.22 Exit 50 shares at $150.04Exit 50 shares at $160.06 Average exit $155 for 11.3% gain.…

  • The Only Way I Know to Trade Post-Boom Commodity Bust

    Today I received an insightful comment about commodity stocks and my recent bounce plays: This market is nasty. The commodity stocks you point out had a little bounce yesterday but are down again today. The selling seems indiscriminate. I have only been studying the market for about 8 year so…

  • Commodity Trades and Last Night’s Game Plan from the Trade Report

    Commodities are bouncing off of yesterday’s lows. I entered three trades on weakness today. I bought: 100 shares of POT at $139.22150 DIG at $63.85100 X at $96.36 My strategy going into the trading day was to only buy when the stocks were in the red. I don’t want to…

  • 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),…

  • Trade Entry: X

    I bought 200 shares of X at $110.92 (trade posted on blog this morning). The Setup: Oversold Bounce. Extremely oversold stock within bearish downtrend. Stochastics oversold. Price at April support levels. Risk: Stop placed below support level, around $104. Target in the $120-130 range. I hope to have the other…

  • Trade Update: NOV, POT and X

    I took small long positions in X, NOV and POT. These are oversold bounce plays I talked about yesterday. More details to come.

  • The Commodity Trade

    Commodities are extremely oversold. This sets up one of my favorite trades, the oversold bounce trade. I will likely go long a commodity or two if we get more weakness tomorrow. These will be short term setups. The downtrend is still down, and a few days of bounce would setup…

  • 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…