Paul J Singh

Category: short setup

  • A Monsanto Topping Pattern?

    I went short 100 shares of MON at $120.76. Rather than analyze the trade setup as I have been doing, I’d like to take a look at MON’s weekly chart. It’s starting to look like a top might be forming. Take a look at the price action. For the fist…

  • Are Steel Stocks Ready to Rollover?

    It has not been wise betting against steel stocks, but there may be a low risk short setup forming. Let’s take a look at the chart of AKS, which is representative of many steel stocks (MTL, ZEUS, X). The first thing that concerns me is that RSI has made a…

  • Trade: Gold’s Sell Signal

    Over the past few months overbought stochastics readings have given reliable short term sell/short signals. We are just about there right now. I used today’s strength to short gold via DZZ (300 shares at $29.22), which is a leveraged gold short. Here is the GLD chart. Pay attention to the…

  • Potash Trade

    Potash finally posted an extremely bearish day. Although I felt strongly that the stock was ripe for a fall, I have to admit I got a little nervous when the stock started creeping dangerously close to my stop in the $215 range (I went short at $208.77). I highlighted a…

  • From Long to Short: NFLX

    NFLX (Netflix) is a good example of a stock that can change from a long to a short setup on the turn of a dime. Apparently the street did not like the earnings call, as the stock gapped down and broke major support levels. I may short in a few…

  • How Can You Not Bet Against Gold?

    I am hearing a lot of bullish chatter amongst bloggers and media about the near future for gold. This seems to always happen when a former leader (momo stock) breaks down and prints a dead cat bounce. I love it when this happens. Let’s ignore the talking heads and take…

  • Pioneer Trade: HAL

    I usually do not short extended stocks unless I see a major divergence signal or at least one distrubution day. However, I decided to take a small short position in HAL today. Technically, the stock still looks great and there are no major divergences. The 52 week high in price…

  • Today’s Trade: FWLT

    I am short 400 shares of FWLT at $62. The setup: Broken momentum stock rising up to and stalling at resistance in a loose bear flag. Poor OBV and volume pattern, with stochastics showing an overbought sell signal. I used a “sell short limit order” to place the trade. This…

  • Old Reliable Looks Good (Bad) Again

    During every cycle I have a few stocks that I use as “go to” plays over and over again. I’ll keep taking the same trade in a stock until it stops working. Recently, DECK has been one of those reliable stocks and looks to be failing at resistance.

  • More on DBA

    Before we look at the current chart, take a look at my recent DBA posts for a refresher on finding stocks/markets that are topping and ready to rollover. There is a lot to be learned from the charts. DBA today:

  • Chart of the Day: DBA

    I know Agriculture has dominated my posts over the past two weeks, but it’s too hard to ignore the lack of accumulation in the sector. Here is a chart of DBA:

  • Saturday Review: Shorting Momentum Stocks

    This post from August 2007 offers some timely advice on shorting momentum stocks: Those of you familiar with my trading style know I rarely short high flying stocks. While it seems logical to go against a stock that is overextended, this type of trade generally takes on too much risk.…

  • Today’s Trade: MON

    I took a small short position in MON today, shorting 150 shares at $108.53. As noted in my previous posts, distribution has taken over ag related sectors and MON is taking the lead in this phase. I have yet to see a strong price move coupled with strong volume, which…

  • The Game Plan for Shorting Agriculture

    As I previously discussed, I am no longer bullish on the ag sector. As DBA shows, the ETF is showing a distribution pattern common among tops. This weekend I analyzed the sector in search of shorts and came up with three names that head my watchlist: TRA, DE and MON.…

  • Today’s Trade: CPLA (Short) and AKS

    I went short 400 shares of CPLA at $55.68. This was a textbook short play that took a nose dive shortly after I entered. I bought after the stock’s failure at the 200 day moving average. This is one of my go to patterns: broken momo stock, drops below 200…

  • Today’s Trades: TWM, CREE, AKS and DECK

    I sold 400 shares of TWM at $83.64 (entry at $77.10) for a $2616 gain (+8.4%). I will likely enter again on a pullback or breakout of trading range. I was stopped out of CREE at $31.90 (entry at $33.53) for a $489 loss (-4.8%). I still like the chart…

  • Today’s Trade Entries: DUG and AGU

    I bought 200 shares of DUG at $46.56. DUG is an ETF that is short oil and gas. Looking at the chart, we see major accumulation and a pullback to a major moving average and price support. Note that this is the opposite of what is happening in the oil…

  • Quick Trade Entry Update: FSLR, MON, GS, DNR, PAAS, PRXL

    I am using the bounce over the past two days to start a few more pilot short positions. I went short FSLR ($187.33), MON (114.27, GS (202.55) and DNR (26.01). I am long PAAS (35.86) and PRXL (54.80).

  • Short Play: Deck

    DECK is one of those fad short plays I have talked about in the past. The stock looks to be forming a topping pattern that could send the stock back where it belongs (currently has a higher PE than AAPL). Let’s take a look at the chart: The first thing…

  • Today’s Short Play: AAPL

    I am short 100 shares AAPL at $177.68. I’ll take 50 shares off the table at the recent low of $170, and the other 50 if the stock reaches the November low of $155. My stop is above the 50 day moving average, around $183. It’s always tough to short…

  • Broken Momentum Stocks

    It is inevitable that most momentum stocks will fall just as far as they climbed. Many investors and traders end up losing most or all of their profits either holding on or continually playing the bounces in these stocks. Here are 9 recent momentum plays that are showing signs that…