Category: trade managment
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AIG is a Great Low Risk Setup
AIG’s volume pattern shows that it is under accumulation. This pullback offers a low risk setup. If entered around $37, with a stop under the 20 day moving average at $34.50 and target near the recent high at $50, we are looking at a 6:1 reward ratio. If you find…
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Is DE (John Deere) a Short Setup?
A Trade Report member sent me an email about DE. Here is the e-mail and my response I think it is great time to short “DE”? RSI, OBV and MACD are all bearish…plus, the Durable good is bad.. While the price pattern is not bearish, I agree in that RSI…
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Today’s Trade: DRYS
1000 shares DRYS at $6.60. DRYS is a focus list stock from the Trade Report I send nightly to subscribers. Setup: Breakout-pullback. The stock broke out over the 50 day moving average and has consolidated on low volume. Trade Management: DRYS offers a good risk ratio and trade management. A…
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RIMM Breakout and Pair Trade
Thus far the “pair trade” I outlined yesterday and entered on Friday is a success, as RIMM broke out in a big way today and AMZN (short) hangs out under the “failed breakout” resistance level. I took a partial profit in RIMM today and moved my stop up to entry…
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Against the Apple Trend
AAPL is on my bullish watchlish. Why wouldn’t it be? It has a great price and volume pattern, and has shows relative strength versus the S&P 500. However, the stock is very overbought. Every one of the measures I use to find “rubber band” setups is off the charts. I…
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SSO Provides Low Risk Entry
While the “edge” or probability for the trade may be 50 percent or less (accumulation pattern is not what it was a week ago), SSO does provide a low risk entry point that can be easily managed with a stop under the recent lows. I am willing to take low…
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Important Lesson and Free Trade Report
I am posting today’s issue of the member only Trade Report. It is the shortest report I have published, and has the smallest focus list ever presented. There are also no charts. However, there is an important lesson that applies to blog readers as well as report membersqau. http://docs.google.com/View?docid=d5z8q8w_313cgc6qqtr
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Final Exit in Pot Trade
update (11:57am): typos fixed. Thanks to those who pointed them out. I exited what was left of my POT position at $159.89. The final details of the trade. 100 shares of POT bought at $139.22 Exit 50 shares at $150.04Exit 50 shares at $160.06 Average exit $155 for 11.3% gain.…
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Financials and Banks
Many financial and bank stocks are showing bottoming continuation patterns. However, SKF, the inverse ETF that I use to short the sector, is at a key support level and may be good for a quick trade. The probability of the trade working is likely not better than 50 percent. However,…
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SPY Trade Analysis
Last Monday (August 12th) I took a small SPY short position based on a “failed breakout” scenario, above $131 (I actually used SDS–the inverse ETF). It’s now trading at $126.69. Below is what I wrote to my trade report members. It explains not only the setup, but the thought process…
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Why I like to take partial profits
X is a good example of why I like taking partial profits. I would have been inclined to take full profits when I had a decent gain. Instead, I took partial profits, moved my stop up to break even, and now am reaping the benefits of today’s huge breakout. Note:…
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Anatomy of a Trade: WYNN
I shorted 500 shares of WYNN 8 days ago at $85.03 based on a “dirty bear flag” setup. While technically not a bear flag, the stock had broken support on was pulling back up to the resistance point. Volume distribution pattern was bearish, meaning heavy down days with low volume…
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Why Do You Like DUG
Here is an e-mail I received today: MS,Why do you like DUG so much? It looks to me like you are trying to pick a top in oils, just like you are trying to pick a bottom in SSO. Don’t fight the trend man. SSO is going lower and DUG…
Paul J Singh 