Paul J Singh

  • The Six Indicators

    I am getting a lot of questions about the 6 indicators I use to measure market extremes. Most seem to think I am talking about stochastics, TICK, T2108 and a few others. It’s not that simple. I’ve created the indicator I mentioned, and 4 of them are combinations of some…

  • Trades and Thoughts

    All of my oversold bounce indicators are now flashing buy signals. However, I do have some concerns and am not taking on any huge positions here. While I have made some trades to the long side to try and capitalize on a bounce, they are all average or small in…

  • Religion

    TRLG (True Religion) has been a “go to” trade for me ever since the early May breakout. It’s held up quite nicely and I am back in.

  • Quickie Trade Update

    I’ll post specifics later, but I’ve used today’s weakness to buy an index ETF, and made one ag and one energy play.

  • Trade Entry: EWZ Bounce Play

    I bought 500 shares of EWZ at $90.06. Setup: Oversold bounce setup. I had a buy stop set above $90. Volume was great today, and the highs held, unlike that of the Dow. Risk: My stop is set under the recent lows. Target is the $94-95 range. I chose the…

  • Stalking for the Bounce

    I use 6 indicators for deciding when to play an oversold bounce. Today four of them are giving buy signals. If we get a good amount of weakness tomorrow, the fifth indicator will likely give a buy signal as well. For the time being, I am ignoring my watchlist. I…

  • Trade Update: PCX and TRA

    I’ve made a number of entries and exits today. I am gettting a lot of questions about TRA and PCX. I’ll have more details on all my trades tonight. I was stopped out of TRA for a loss and took partial profits in the PCX short.

  • Trade Entry: TRA

    I bought 500 shares of TRA at $53.12. Setup: A combo platter of a breakout and trend-pullback and entering within a forming high and tight flag. I expect a continuation of the trend. Great volume pattern and RSI and stochastics confirm price highs. The stock is under accumulated here. Risk:…

  • PCX: I’m in

    I used this morning’s strength (on feeble volume) to enter my short position in PCX. Read last night’s post to understand the entry.

  • PCX: High Risk and High Reward

    PCX has been the killer momo play for 2008. The stock has more than tripled, and has been relentless since breaking out in April, going from $50 to $150 in about two months. When I say relentless, I mean relentless. In that span, there was not even one high volume…

  • Overbought Sectors

    Here is a list of sectors with the highest stochastic readings. I use this information for three setups: 1. To find sectors with good chart patterns and await a pullback for entry 2. Find sectors with bad chart patterns that are bouncing to resistance and ready to short. 3. Find…

  • Don’t Overpay for POT

    Ag related stocks are finally starting to pullback. Those of us who missed the recent run (I raise my hand in shame) are starting to get itchy trigger fingers. Rest assured, I’ve got my gun set on safety. Take a look at Potash. Even with the 10 point pullback from…

  • Sector Analysis: Discount Variety Stores

    As many of you know, I usually spend Sunday evening analyzing sectors and the hot stocks within those groups. Due to time constraints I’ve been skipping this watchlist ritual, instead only trading stocks that I find through my scans. I had some free time today and was surprised to see…

  • Managing the Trade: Partial Profits in BEXP

    In my last posts I talked about trade management. Today’s trade is an example of how I manage a swing trade in a momentum stock. I took a 500 share position in BEXP on Monday at $15.50. My intitial target was set at $17.50. I exited half my position at…

  • Perception and Trade Management

    Trading chart patterns is an inexact science. Two smart and experienced traders can view a chart in very different ways, based on their biases, mental makeup, psychology and a variety of other factors. Let’s take a look at SWN: An argument can be made for three different chart patterns. One…

  • BEXP: Late Entry Post

    I entered BEXP yesterday at the close as it showed that it would help support. This is a late post, so I won’t include it if and when I get around to updating my trading results.

  • Part-Time Trading Review

    I am frequently asked questions about part-time trading, and received a number of e-mails this weekend. The recent market action has something to do with it. I must admit that I too have been tempted to take a few days off and monitor the markets more closely. I’m glad I…

  • QID Pattern

    We’ve got a nice bottoming formation forming in QID, which is short the Nasdaq. I took a small position on the pullback (Nasdaq strength) today, and may take a bigger position on either more of a pullback or break over resistance. I am using this as a hedge on any…

  • MTL Exit

    I exited MTL today for an acceptable sized loss. It’s not difficult to guess where I exited. My stop was placed just under the 50 day moving average. I’ve been asked if I now think MTL is a short play, since it has broke below support. I definately will not…

  • 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…

  • Sectors Analysis

    The 20 most oversold sectors: The 20 most overbought sectors How do I use this information? In the overbought sectors, I look for charts where stocks are near highs and wait for a healthy pullback. In oversold sectors, I look for stocks oversold near support that have good risk-reward potential.