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 →
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 times they reached extreme levels, profitable... Continue Reading →
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.
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 notes with chart:I took one... Continue Reading →
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.
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 possibility of a big gain if the market... Continue Reading →
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 shares is $170.
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), the stock is so oversold that... Continue Reading →
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 stop under the 200 day... Continue Reading →