SGR Lookin’ Like a Dead Cat

Shaw Group Inc. (SGR) is a former high flying stock that seems to have lost its mojo. In July, the stock gapped up after a long uptrend, but could not hold the gap level. It now looks like the gap was an "exhaustion gap", which usually comes at the end of an uptrend and signals... Continue Reading →

Distribution is Taking Over

Lately I have advised that market the volatility is just noise within a range and it is too early to make predictions in either direction. Things are becoming clearer now, and the news is not good for bulls. The SPY (S&P 500 ETF) has broke down below both price and moving average support. What's worse,... Continue Reading →

Four Reasons to Sell Steel

The steel sector, which has been one of my favorites over the past year, has undergone a change in character that now puts it on my "short watchlist." Four elements make it an attractive short:1. Signs of distribution, with high volume down days accompanied by low volume updays.2. Break of the 200 day moving average,... Continue Reading →

Building My Watchlist

Today I had a little time to "get away" from the vacation and analyze the market. My best bet is we will see a "dead cat bounce" followed by another leg down. Of course, I could be wrong and we'll see more resilience from the bulls.Right now I am building three sets of watchlists. The... Continue Reading →

Chinks in the Armor: STLD

STLD and other steel stocks have been momentum favorites of mine for quite some time. While many steel stocks still look solid (l MT and RIO to name a few), some noteworthy high flyers are showing chinks in the armor. This is not a good sign for the industry as a whole.Let's take a look... Continue Reading →

Google Forming a Negative Divergence

While GOOGLE (GOOG) made my long position trading watchlist (entry at 50 day moving average), I could not help but notice the startling RSI, OBV and stochastic divergences that have formed at the current new highs.For those who don't know, a negative divergence forms when price increases while the indicators decrease. As you can see... Continue Reading →

Market Technicals

The S&P 500 is at a critcal juncture, already having broken below the 50 day moving average and now ready to test recent lows. If we see a breakdown below 1487, we officially will be in a short to mid term downtrend. A violation of this level would also signal a double top short setup.... Continue Reading →

Short Watchlist: CAL

While I'm still not in full bear mode (I won't be until the S&P breaks below 1450), I am starting to formulate a short watchlist. CAL looks like a good short on a break below $35.

Thinking Out Loud About Amazon

Like many, I am kicking myself for not entering AMZN yesterday. On Thursday, I featured it as a breakout-pullback candidate. When I made my trades yesterday, I came very close to taking a 500 share position at around $44.40, but decided against it for two reasons. First, I had made my buy entry closer to... Continue Reading →

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