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 →
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.
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, 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 →
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.
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:
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 →
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 →