Category: rubber band setup
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AAPL: Speculative Short Trade
I went short AAPL today. Overbought and lots of space between price and moving average.
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Today’s Trade: PCU
I entered PCU as an oversold bounce play as it falls to support.
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Trade Entry: ACI (short)
I am short ACI at $28.05 based on the extreme overbought readings in stochastic, along with extended price action. This coal setup was featured in the Trade Report last night, for short on strength at the open.
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Trade: SDS
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.
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FCX and PCU: Great Long and Short Setups
PCU and FCX are on fire. Technically, they look great on a pullback to support for long entry. However, they are very extended. Take a look at the distance from the 50 day moving average. I think we are due for a snap back. I will likely short on more…
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Low Risk AMZN Short
AMZN has been a great “extremes” trade (stochastics 90+ and extended price) for the past few months, both as a long and short. The stock is again extended, and offers a low risk short opportunity. Entry here with a tight stop offers a favorable a reward to risk ratio. Allow…
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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_1296ffhsmdfn September 2, 2009 Note: I will not have access to a computer Thursday and…
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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.
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Monday Game Plan and Free Trade Report
Here is the strategy I laid out for subscribers to start the week: http://docs.google.com/View?id=d5z8q8w_1205gxt3rxp3 The market is in a very bullish made right now. As we can see on the SPY chart, RSI confirms the recent breakout over resistance, as it makes new highs along with the index. The volume…
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Exiting Short Positions
Here is an alert I sent subscribers this morning: I was stopped out of the SPY short (via SDS) for a small loss. Also exited most shorts. I am NOT taking on any short positions. This is not an orderly pullback. Instead, SPY is showing a strong breakout bar. We’ll…
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Today’s Trades: FCX and MON
I made two speculative trades today, short FCX and long MON. MON is oversold, but still a few points from support. The higher probability setup is to enter long at $70, which I will do if I get stopped out of this trade. FCX shows a bearish pattern, but has…
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More on the Overbought Status of Apple
Last night I talked about the “rubber band” short setup for Apple. If the stock heads into the close with the same candle pattern that has emerged this morning, I would expect a pullback based on an early “evening star” candle formation. My testing and experience tells me that this…
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Against the Apple Trend
AAPL is on my bullish watchlish. Why wouldn’t it be? It has a great price and volume pattern, and has shows relative strength versus the S&P 500. However, the stock is very overbought. Every one of the measures I use to find “rubber band” setups is off the charts. I…
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The Simple SPY Strategy
My strategy for trading SPY is about as simple as it gets right now: Short strength and buy weakness. I will look to enter long on a pullback to the 200 day moving average. My “rubber band” short setup triggers on continued strength close to $100.
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Today’s Trade: SSO
I took a small position in SSO today based on the “oversold bounce” or “rubber band” setup. My stop is just below the support line and I will be quick to take any available profits. Update: I am having trouble with chart annotations and will post chart later today.
Paul J Singh 