Paul J Singh

Category: strategy

  • Market, Trade and Chat Notes

    Trades:I initiated a few shorts on the morning bounce (DRYS, LEH). I bought KGC, a gold stock for which I had a buy stop in place on breakout of $21. Tough Market:Four of the six people I’ve had private chats with have said they are having trouble gaming this market.…

  • Current Market Thesis

    I just finished up my research for the coming week. It’s clear to me that there are only three sectors I want to buy right now. In the coming week, I’ll be looking for clean entries in gold, oil and farm related trading vehicles. Lots of good looking shorts, but…

  • Anatomy of a Broken Momentum Stock – Bad Signs For Market

    I am seeing a lot of momentum stocks which have broke down below their trend lines. CPLA is a good example. During the trend, the stock has continually bounced off either the 20 day or 50 day moving average. Just as important, down moves have not shown much distribution. That’s…

  • Quick Trading Notes

    I covered some of my shorts today, though I am still holding the GS short. I was stopped out of BIDU. Still holding MON. I made two trades today. I bought SWN, an independent oil stock that I like quite a bit. I also initiated two shorts, AAPL and FSLR.…

  • First Mistake of the New Year

    Well my friends, it didn’t take me long to make a boneheaded move, on the very first day trading day of the new year. I went long MON. It looks great. A sector I love, and have made some mad coin playing (agriculture). Nice pullback to support. Nice volume pattern…

  • Thoughts to Start the New Year

    Ignore the market forecasts. It’s all bunk. Nobody knows where the indexes will be a year from now, or which sectors will gain interest. Pay close attention to sector accumulation and distribution patterns, along with price action. Some sectors will fall off the map, allowing for new sectors to enter…

  • Catching a Breakout Early: CF Trade

    On Tuesday I bought 300 shares of CF at $92.05. Today the stock broke out over resistance at around $100 and closed at $107.76. I sold half my position near the close at $107.34 for a $2293 gain (+16.6%). I am holding 150 shares and will buy more on a…

  • Market Selling Bounces Instead of Buying Dips

    With the current state of the market, the prudent thing to do is to sell bounces. We are seeing a change in market character, folks. Remember just a short while ago, when strength beget more strength and dips had to be bought? Those days are behind us, at least for…

  • Trade Analysis via Video Webcast

    Last night I created a video highlighting a few of my trades (MA, AAPL, GOOG, NOV). I had problems uploading, so the post is a little late. I have already taken profits in the NOV short. http://flash.revver.com/player/1.0/player.swf?mediaId=500455&affiliateId=93676 Yesterday’s trades:As noted in yesterday’s video, I went into the week with my…

  • Trades

    At the end of this post, there is a note that I want all of my readers to view. Yesterday, I was stopped out of 300 shares of AAPL at $179.85 (entry at $185.09) for a $1572 loss (-2.9%). Yesterday, my trailing stop on RIMM was hit at $125 (entry…

  • Trading Tips for the Part-Time Trader

    Like many of you, I trade around my full-time job. Sometimes it feels at though I have two full-time jobs. Trading successfully requires a smart, detailed approach. I wrote a guest post over at Blain Reinkensmeyer’s site, detailing five smart tips for the part-time trader. Head on over there and…

  • Sectors that are Working in this Volatile Market

    Two sectors that have withstood current volatility and selling pressure are Education Services and Aerospace/Defense. A few stocks from these sectors of particular interest are CPLA, EDU, BEAV and ATK. CPLA Chart: BEAV Chart:

  • 10 Rapid Fire Trading Thoughts

    1. Trading earnings breakouts has been a highly effective strategy during the 4th quarter thus far. 2. In the financial area, stick with Goldman Sachs and forget the rest. 3. I’ve been holding trades longer than usual over the past few months. This is the best way to play a…

  • 6 Resilient Stocks to Trade on the Long Side

    My last post laid out a game plan for trading in queezy markets, not unlike the one we are currently facing. Here are six stocks from my focus list that satisfy the third point, which tells us to monitor stocks that are doing well in the face of a strong…

  • Game Plan for Trading a Queezy Market

    Trading after strong distribution days, which have the potential to change the nature of the market, isn’t easy. For me, it’s the toughest period to trade. Since we don’t know if this is a correction or a change in trend, we must be ready for either event. I do this…

  • Will the Market Post Another Distribution Day?

    I have to admit I am a little surprised by today’s action. Due to Google’s glowing results, oversold conditions and the the historically postive results for October 19th (since Black Monday), my expectations for today leaned to the bullish side. With about 2 1/2 hours left before the close, it…

  • Is this Oversold Market Ready to Bounce?

    Let’s take a look at a chart of the S&P 500: What jumped out at me is that the index has, without fail, bounced when reaching oversold conditions in stochastics and RSI. We’ve reached that level again, and as candlestick officionados will point out, the last two days have printed…

  • AAPL’s New High a Market Tell?

    After Thursday’s distribution day, I noted that we need to focus on leading momentum stocks to gauge the market’s health. If these stocks could mount Thursday’s losses and get back to new highs, it would signal a new leg to the bull run. AAPL is one of the first leading…

  • Watch Leading Momentum Stocks for Market Tell

    Well, so far we have not seen any follow through on yesterday’s decline. I’m still not convinced it was a one day thing, so I’ll be watching momentum names that have lead the market over the last few months very closely. Take AAPL. While it’s bounced nicely this morning, we…

  • Play this Market by Preparing for All Possibilities

    Was this a temporary correction, the start of a deep correction, or the end of the line for the bull market? That’s the question everybody is asking, and nobody knows (no matter what they tell you). I’m not about to make a guess. Instead, I’m preparing myself for whatever comes…

  • Where is the Dip?

    Like many traders, I’m having a hard time finding entry points. CPLA is a good example of most stocks on my focus list. The stock that is extended and just won’t quit going up. There are three logical ways to play this market: 1) Jump in now, which is probably…