Now as then, the market appears to be undergoing a transition. As well, it may pay to be suspicious of any sudden price move back to the average. A short-lived relief rally could be the next move here. Looking through my charts I saw a lot of big downside moves, as money is just clearing out of the market. Selling climax, or just the start of a monster slide (or both?)We were stopped out of VXX.
| Current Holdings | ||||||
|---|---|---|---|---|---|---|
| Ticker | Basis | Closing Price |
Perf. | Sell-Stop | Addl Exit Guideline | Chart |
| SRS | 7.61 | 8.26 | +8.5% | 7.29 | N/A | Chart |
| MZZ | 21.11 | 23.35 | +10.6% | 20.49 | Alternate sell-stop: 22.08 | Chart |
| ALSK | 8.14 | 8.15 | +0.1% | 7.91 | N/A | Chart |
| PSQ | 45.26 | 46.50 | +2.7% | 44.39 | N/A | Chart |
I focus on the 50-day moving average because time and again the market is drawn to it, and I still think there's a good chance the market will revisit the average soon (like this week). The two long ideas for Monday are intended as small bets. However, if market weakness intensifies, the average could be much lower before the market revisits its 50. There's a couple of short ideas for this scenario.
| Ticker | Entry | Exit A | Exit C | Chart |
|---|---|---|---|---|
| SRS (Ultrashort Real Estate) | 8.43 | 7.89 | N/A | Chart |
| SEF (Short Financials) | 45.41 | 43.91 | N/A | Chart |
| BEE (Strategic Hotels) | 2.36 | 2.23 | 2.14 | Chart |
| SOMX (Somaxon) | 2.44 | 2.24 | 2.11 | Chart |
Please refer to "How To Trade The Ideas" (right-hand side) to read this table.
2 comments:
Hi,
Do you use any specific patterns for new ideas. I am trying to use finviz but very unlucky.
Thanks,
Jim
I eyeball the charts of a list of tickers I maintain, no screens or pattern filters. I look for a 1-2 day consolidation. Finviz I was using, but not anymore - back to stockcharts. Stockcharts candleglance view gives me the 50-day average, finviz equivalent does not.
Post a Comment