Category: short setup
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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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Today’s Trade: SDS
I am shorting SPY using inverse ETF SDS. SPY has reached resistance and is very overbought. This is a recipe for a pullback, as it is very hard to make meaningful advances after a big run up and extreme overbought conditions. The trade is low risk and offers a decent…
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The Short Apple Setup
AAPL is showing a negative divergence and is extremely extended at new highs. I am short with a tight stop.
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Too Extended to Enter Longs
While them market is too extended for my to add to my long positions (report members know that I was long before the move using the oversold bounce strategy), there are some low risk short setups among inverse ETFs.
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Head and Shoulders Pattern is Still Intact
As long as the head and shoulders pattern holds, I remain ready to initiate shorts on a bounce.
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Monday’s Free Trade Report
Here is the report I sent to subscribers to start the trading week. http://docs.google.com/View?id=d5z8q8w_1145dtxkzjcp A lot more longs than shorts, which is a clue for the overall market.
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The Answer is Negative Divergence!
Yesterday I posted a chart of GS and asked what the chart tells us. GS is showing a clear negative divergence right at resistance. This signals a pullback at resistance, or if the R level does break, a pattern failure post breakout. Short entry can be made under R, or…
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RIMM Showing Bear Flag and Distribution
RIMM is at the top of my focus list for shorts. Notice the bear flag formation and bear flag that has formed under the 50 day moving average. The volume pattern is also showing distribution, with heavy volume on the recent drop.
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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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Short Setup: ACI
Another day of bounce would setup the perfect short in ACI:
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Short Setup: AMZN
AMZN has broke down below the 50 day moving average and shows a negative volume pattern. RSI has also broke down. Looking for entry on bounce, which would provide a low risk setup.
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Exiting Apple Short Trade
I exited the remaining position in the AAPL short trade at $37.44. The stock is now near a decent support area and may be set to bounce. Keep an eye on the bounce. If it’s on weak volume, we’ll get another good short opportunity via a “dead cat bounce”. Right…
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Distribution Showing Up In Brazil ETF (EWZ)
EWZ, along with the other BRIC countries, has been on fire of late. However, the recent consolidation has the look of a short term top, with the volume pattern suggesting distribution. Note the high volume down days during the recent consolidation.
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Another Stock Showing Strong Distribution: WYNN
WYNN was on the long list for quite some time, but has now reversed and is the perfect short setup. A bear flag has formed, with volume that’s showing distribution. Many like to wait for price to breakdown out of the flag pattern. I prefer to enter early, when price…
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Game Plan For Monday
Here is my detailed plan for Monday and the coming week, as sent to subscribers in today’s Trade Report: May 18, 2009 Market Notes: The market has pulled back close to the entry point we’ve been watching (87-88). The pullback is not ideal, as price has not pulled back in…
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Short Setup: NTRS
I went short NTRS this morning. The stock has broke down below support, pulled back and shows a negative volume pattern.
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SPY at a Glance
The doji candle printed Friday, which follows a bounce on low volume with overbought stochastics, leads me to believe we’ll see a pullback this week.
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Gold and Silver Stocks are Setting Up as Shorts
Many gold and silver stocks showed distribution patterns on the recent pullback. here are a few of my favorite short setups: PAAS, SLV, AEM, KGC
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The AAPL Short
As posted in the Trade Report earlier this week, I went short 300 shares of AAPL at $89.20. This was done mosly as a hedge against my new long positions (MOS, USD SIGM, USO), and I was a bit nervous about the trade since it was showing good relative strength…
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Short Setups in the Even of a Bounce
If the market gives us a multi-day bounce, I would like to use it to initiate a few short positions. I am currently watching broken stocks that are bouncing towards resistance levels. ALXN is a good example. A few days of bounce would put it near the 50 day moving…
Paul J Singh 