I took a short position today in SKX. The stock is extended and today's indecisive price movement on high volume leads me to believe a pullback is in order.
I pointed to FUQI as a short when it was around $30. I took the trade, which would have been successful had I used a wider stop. It's now broke down below the 50 day moving average and is showing distribution in the volume pattern. I will short on a pullback to the moving average,... Continue Reading →
Is it time to take profits in the STEC short? Entry was made back on September 24th at $30.75., so we are looking at a 15-20 percent gain.My general approach to exits is to set a target based on support/resistance levels and take a partial profit at that level. As you can see from the... Continue Reading →
Momentum stocks usually give ample warning before taking the inevitable fall. Is FUQI showing signs?
On Friday I pointed to the X short setup, if X was to pullback to the 50 day moving average. We got that yesterday. As noted to Trade Report members yesterday, I took the short entry, with a stop just above the moving average.This is a variation of the breakdown-pullback short setup.
X has broke down below the 50 day moving average and looks good for short entry on a pullback or weak bounce.
CPLA is showing a classic breakdown-pullback setup. The stock broke down below teh 50 day moving average with strong price bears, and now is in the midst of an orderly pullback to resistance.
Last week I posted about APPL showing signs of pulling back, but still being a tough read. As Report members know, I decided to short on the once it made a thrust to $170. Overbought conditions, distance from the 50 day moving average and a negative divergence in RSI made it a decent counter trend... Continue Reading →
A Trade Report member sent me an email about DE. Here is the e-mail and my response I think it is great time to short "DE"? RSI, OBV and MACD are all bearish...plus, the Durable good is bad..While the price pattern is not bearish, I agree in that RSI is showing a slight negative divergence... Continue Reading →