I pointed to FUQI as a short when it was around $30. I took the trade, which would have been successful had I used a wider stop. It's now broke down below the 50 day moving average and is showing distribution in the volume pattern. I will short on a pullback to the moving average,... Continue Reading →
VPRT Showing Signs of Cracking
Notice the negative volume pattern during recent consolidation period.
Head and Shoulders Pattern is Still Intact
As long as the head and shoulders pattern holds, I remain ready to initiate shorts on a bounce.
Distribution Showing Up In Brazil ETF (EWZ)
EWZ, along with the other BRIC countries, has been on fire of late. However, the recent consolidation has the look of a short term top, with the volume pattern suggesting distribution.Note the high volume down days during the recent consolidation.
It’s Time To Short Commodities
Over the past week I have been watching for the commodity bounce to reach resistance and begin to fade. We are nearing that point in many commodity stocks. I will likely stay away from energy, as I do see more room to the upside for oil. This could boost energy stocks.Steel, agriculture, copper, gold and... Continue Reading →
TBSI Still Looks Like an Attractive Short
TBSI, and other dry bulk shippers, have put in topping formations and dropped enough that it's tough to enter short right now. However, there still is room for further downside. I expect to see a bounce soon and may enter short if it's of the "dead cat" variety. The March low of $26 is my... Continue Reading →
Countertrend Gold Trade
Gold is getting interesting as a short term play (bearish) that is counter to the longterm trend (bullish). If light volume continues on the up move, I will enter one of the weaker stocks.
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:
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. Common among these three stocks... Continue Reading →
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 day moving average with heavy... Continue Reading →