Paul J Singh

Category: setup

  • PDE Trade: A Classic Pullback From Breakout Setup

    I traded a classic setup today, the good old pullback to support after a breakout. The elements that lead to entry include: 1. Price breaks out over an established resistance level. 2. Volume picks up on the way up, showing increased accumulation. 3. The stock pulls back to the old…

  • Trade: Playing the Lehman bounce

    Investment banking stocks such as LEH and MS have been crushed over the past couple of weeks. It’s always risky to go counter to a strong downtrend, but I think LEH is a low risk bounce setup right now. LEH almost broke down below to strong areas of support: the…

  • New High Failure Trade and AAPL

    One of my favorite short plays is the “new high failure” trade. There are three elements to this trade: 1) That stock makes a new high2) RSI peaks at a lower level than the previous high3) Take a short position if and only if the stock dip below the previous…

  • Here’s how a stock can make it to my watchlist: sector analysis

    The most frequently asked question I receive is some variation of how I find the stocks that make it to my watchlist. My senses tell me that most of those asking these questions expect that I have some magic formula I plug in that spits out stocks that fit the…