The following short setups all feature one of my favorite short setups: consolidation post downtrend featuring a negative volume pattern (distribution). A continuation of downtrend is expected.VCLK, RS, SNDA, AMAG, ATK
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 patterns shows there's some real velocity... Continue Reading →
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 edge.
AAPL is showing a negative divergence and is extremely extended at new highs. I am short with a tight stop.
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.
Here is the report I sent to subscribers to start the trading week.http://docs.google.com/View?id=d5z8q8w_1145dtxkzjcpA lot more longs than shorts, which is a clue for the overall market.
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 post breakout. As noted to Trade... Continue Reading →
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.
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 bounced over the 50 day... Continue Reading →