X provides a low risk setup as it pulls back to the 50 day moving average. If the market tanks, X will go down with it, but losses are easily managed at this level.
Buy the Dip
I'd suggest most traders continue to stay on the sidelines. If trading, my preference right now is short term long plays. Homebuilders and airlines look good, but only on pullbacks.
Can We Buy CNX’s Pullback?
Ronald wants to know if I consider the 3.7% drop in CNX, a stock I highlighted earlier in the week, a buyable pullback. While I would not buy just yet, the stock is still technically sound. Support has not broke and volume on today's decline was within the stocks normal range. OBV still looks good.... Continue Reading →
Today’s Trades: SGR, OII, BHP, JASO, EDU
I am using today's dip to buy stocks from strong sectors nearing support. I made the following trades:300 shares of SGR at $68.00. This is an infrastructure and post earnings suprise play. 300 shares of OII at $78.50. I've been waiting for this energy stocks to pullback near 20 day moving average support.200 shares of... Continue Reading →
Today’s Trade: AEM
I bought 300 shares of AEM at $46.85. I've been waiting for a pullback to support in gold and it looks like we've finally got one. Stochastics have reached extremely oversold levels and obv has dipped to a support level on low volume.There are a few reasons to be skeptical about this trade. It's always... Continue Reading →
Later in the day I bought 400 shares of MMM at $88.75.The stock shows no signs of the recent market slide. I know some of you are scratching your heads thinking "it's dropped from $92 to $88." I see that too, and I like it. While many stocks pulled back quickly on heavy volume, 3M... Continue Reading →
Trades: FTO, VLO and CMG
Three trades based on confirmation moves after pullbacks to support. All three positons came from my "primary 100 watchlist". CMG was on the top 25 low floats posted yesterday.I bought 500 shares of FTO at $46.05. Nice high volume confirmation move at support.I bought 300 shares of CMG at $87.10. Another confirmation move after a... Continue Reading →
SNCR: No Longer an Ideal Pullback Candidate
I received an email from a reader who asked if today's pullback in SNCR was an entry signal. My answer was a not so subtle, "Not on your life!"In last night's chart post, I mentioned that I liked SNCR on a pullback. Those that have been reading me for some time know that I only... Continue Reading →
What if your pullback play goes against the overall market?
I recevied the following question from a reader. It's a tough one to answer, as I have no hard and fast rule on the topic.I wanted to know if you will enter pullbacks that look good even if the market was strong during the pullback? Basically say the DOW or Nas had a nice 2... Continue Reading →
Today’s Trades: OII, HEI and MT
Today I took positions in three of the six stocks that I posted on my primary watchlist last night. All three are pullback plays in trending stocks. Due to the current nature of the market, I cut my normal position size in half for these trades.I bought 250 shares of OII at $51.14. I bought... Continue Reading →