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 enough trades like this, you... Continue Reading →

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, the Durable good is bad..While the price pattern is not bearish, I agree in that RSI is showing a slight negative divergence... Continue Reading →

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 stop can be placed under the... Continue Reading →

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 level to lock in gains.

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 will likely short the next move... Continue Reading →

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 risk setups even if the probability... Continue Reading →

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 $139.22Exit 50 shares at $150.04Exit 50 shares at $160.06Average exit $155 for 11.3% gain.Total Profit : $1583 Recent POT and commodity related posts:Commodity... Continue Reading →

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, risk is good. If entered here,... Continue Reading →

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 and trade management strategy that... Continue Reading →

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