Paul J Singh

Category: strategy

  • Sectors with Bottom Formations

    No matter how bearish your fundamental thesis is on the following sectors, it’s hard to deny that price and volume are showing bottoming formations in financials, casinos and real estate. Here is what I wrote about these sectors in the Trade Report to start the week: I have narrowed my…

  • CAL setup

    I mentioned earlier today that I entered to airline stocks. Both CAL and UAUA have similar setups. CAL shows a classic bottoming formation. Note the volume pattern. Entry close to the moving average is ideal, with the upside target at the first sign of strong resistance. I may buy more…

  • Trading Plan and Clarification

    Trading Plan: My watchlist is small this week. Probably as small as it has been all year. However, I may take some of the biggest position sizes I have taken in quite some time (while still managing risk appropriately). Here is the list: I am monitoring leveraged index long ETFs…

  • Position Update and Lesson Learned

    I am still holding my SSO position. I bought at $59.96 and it closed at $59.66. Although today did suck, remember that the lows in the S&P still have not been pierced. I am still playing the bounce until my tight stop is hit. I am still holding PBR as…

  • After the Bounce: What’s in Store for the S&P

    As noted at the end of last week, I have positioned myself for a bounce. However, these plays are short term and I will use the bounce to deploy a number of short play. Here is the plan for the S&P. This chart annotes SDS, the inverse S&P short ETF.…

  • Trades and Thoughts

    All of my oversold bounce indicators are now flashing buy signals. However, I do have some concerns and am not taking on any huge positions here. While I have made some trades to the long side to try and capitalize on a bounce, they are all average or small in…

  • Stalking for the Bounce

    I use 6 indicators for deciding when to play an oversold bounce. Today four of them are giving buy signals. If we get a good amount of weakness tomorrow, the fifth indicator will likely give a buy signal as well. For the time being, I am ignoring my watchlist. I…

  • PCX: High Risk and High Reward

    PCX has been the killer momo play for 2008. The stock has more than tripled, and has been relentless since breaking out in April, going from $50 to $150 in about two months. When I say relentless, I mean relentless. In that span, there was not even one high volume…

  • Overbought Sectors

    Here is a list of sectors with the highest stochastic readings. I use this information for three setups: 1. To find sectors with good chart patterns and await a pullback for entry 2. Find sectors with bad chart patterns that are bouncing to resistance and ready to short. 3. Find…

  • Managing the Trade: Partial Profits in BEXP

    In my last posts I talked about trade management. Today’s trade is an example of how I manage a swing trade in a momentum stock. I took a 500 share position in BEXP on Monday at $15.50. My intitial target was set at $17.50. I exited half my position at…

  • Perception and Trade Management

    Trading chart patterns is an inexact science. Two smart and experienced traders can view a chart in very different ways, based on their biases, mental makeup, psychology and a variety of other factors. Let’s take a look at SWN: An argument can be made for three different chart patterns. One…

  • How To Play This Market

    The e-mails I have received over the past week tell me that many of you are confused about how to play this market. Many of you see some good setups, both long and short, but are afraid to pull the trigger because you do not know which way the market…

  • 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…

  • Breakouts with Strong Volume Trends

    Friday’s nightly breakout scan listed just over 100 stocks. An easy way to trim the fat and find good setups to trade is to sort breakouts by obv ranking. This will find breakout stocks with strong volume patterns. Here are Friday’s top 25:

  • 35 Important Trading Tips

    I have compiled a list of tips that turned me into an above average trader. Feel free to add to this list in the comments section. 1. Enter strong stocks when stochastics are oversold. 2. Make sure volume confirms entries. 3. Analyze the top and bottom 20 sectors every Sunday.…

  • What to do about steel and energy stocks

    Those that have missed out on the steel and energy run are in a frustrating position. There is the fear of being left out as the stocks continue to run. However, there is also the fear of “chasing” an overbought stock that’s ready for reversal. Which “fear” should you listen…

  • It’s a Matter of Perspective

    Well, after all the hysteria, today was a ho-hum day. No capitulation and not many major breakdowns in stocks that I watch. Instead, most of the stocks on my watchlist traded within support and resistance ranges. Even the stocks that made 5 percent plus losses, like DECK, are within the…

  • DECK

    I’ve made a few trades that I’ll have to update later. In the meantime, take a look at this chart of DECK. It’s been one of my big winners this year (as a short) and is a good example of how volume predicts price movement. I began posting and shorting…

  • A Low Risk, Risky S&P Trade

    I bought 300 shares of SSO at $62.23. SSO is 2X long the S&P 500. You may be wondering why I would go long an index in a downtrend, which I rarely do. The answer is quite simple. I am getting a low risk entry on a risky trade. Huh?…

  • Quick Thought: The Commodity Bounce

    Many broken commodity plays, like the ag sector, have made big bounces today (as of 11:35 AM ET). Keep an eye on volume. One of two things is going to happen: 1. A low volume bounce which will be a “dead cat” signal. If this happens I will intitiate shorts…