I exited both of my oil trades today for nice gains. Whereas my entries were based on an extremely oversold oil market, today's exits were based on overbought readings. Price is nearing resistance levels while stochastics are nearing extreme levels. More strength would provide a good short entry.
I went short WYNN today at $85.03. I only took a small position because I could a move up to the 20 day moving average. I would likely take a full position at that level.
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 service complex. What we are... Continue Reading →
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 their incredible runs are over:
I bought 200 POT at $138.14. Nice cup and handle breakout. I would have liked to enter in the $135-136 range, but I don't want to chance missing out if the year end rally continues.I went short 100 shares of GS at $213.78. My stop is above the 50 day moving average, around $225. I... Continue Reading →
I took small long positions in CF (92.05), AAPL (179.80), FSLR ($235.25) and RIG (132). The first three were so oversold that I decided to buy after they started to bounce off their lows. If we get the holiday bounce everybody is waiting for, these stocks should do quite well.I used strength to short dryshippers... Continue Reading →
At the top of my focus list is QID, which is an ETF that is a leveraged Nasdaq short. Take a look at today's video to see how I plan to trade it.http://flash.revver.com/player/1.0/player.swf?mediaId=498261&affiliateId=93676http://revver.com/watch/498261/flv/affiliate/93676/qid-stock-trade-setup-11-25-07/
I exited DCO at 42 (entry at$38.10) for a $1170 gain (+10.1%) . The setup was an earnings breakout-pullback. I will re-enter on a pullback to $40.I exited 200 shares of NOV at $67.35 (entry at $63.74) for a $722 gain (+5.7%) . This was an oversold bounce play that now looks like a good... Continue Reading →
Due to the fact that we have been in a solid uptrend, I haven't pointed out many short candidates over the past few months. While the market is currently in a state of flux, I am still hesitant to fire off a big batch of shorts since we are still in an uptrend. Although there... Continue Reading →
The market is now in extremely overbought territory, which is why I actually deployed a short today (DHI- a housing stock at the top of it's downward trend channel). It's seems like ages since I've shorted a stock, and believe it or not, I love shorting!Along with my primary long watchlist, which consists of weaker... Continue Reading →