Many good short sell set ups | stockbee


Many good short sell set ups

The bounce has created number of god short sell set ups in sectors like Airlines, investment banks and many other sectors which were leading sectors few months ago.

The individual stocks which broke out in last couple of weeks like BTJ,RRI,ALJ,WNR,ADBL,GLBL,METH, HTC,UCTT,JSDA,EVEP,JAV, DXPE,FFH,TRCR, PRGX, WFR, etc., have been moving up. Most of them are up 25% or more since then breakout. All of these stocks broke out post market correction. More than 70% of them had a Episodic Pivot breakout in last 20-30 days.

While such stocks and more stocks from the Episodic Pivot list and 100% list and IBD200 list will have such moves, overall I am skeptical of the bounce. The main reasons being, it has come too soon. It takes certain amount of time, ideally 40 to 60 days from start of correction for a tradable and sustainable bounce to develop. I am anticipating the current move to fail. Number of individual stocks which had rallied till now in the up move from July onwards are showing signs of breaking down.So the move might lead to failure or long sideways move. In such environment, individual stock selection is the key. The best method for that in my current scheme of things is Episodic Pivots.

Market Monitor
Total 4% plus bullish breakouts=139
Total 4% plus bearish breakouts=44
65 day bullish/bearish ratio= 773/310
Stocks up 50% or more in a month=2
Stocks up 25% or more in a month=32
Number of stocks with 100% plus move =343
Number of stocks up 200% or more = 66
4% plus signals for 100plus universe=24
4% plus signals for 200plus universe=7

Select stocks which had 100% plus move in last 260 days from the low and which are up more than 4% on higher volume. Today's minimum volume is above 100000. To understand how to trade this see the post "How to find a stock which makes a 1500% plus move in a year".

ASTI,Ascent Solar Technologies Inc (Google  Yahoo  Earnings  Chart
AVCI,Avici Systems (Google  Yahoo  Earnings  Chart
BTJ,Bolt Technology Corp (Google  Yahoo  Earnings  Chart
CECE,Ceco Environmental Corp (Google  Yahoo  Earnings  Chart
CMGI,CMGI Inc (Google  Yahoo  Earnings  Chart
CTIB,Cti Industries Corp (Google  Yahoo  Earnings  Chart
DSTI,Daystar Technologies Inc (Google  Yahoo  Earnings  Chart
EGR,Commerce Energy Group (Google  Yahoo  Earnings  Chart
FSLR,First Solar Inc (Google  Yahoo  Earnings  Chart
FTGX,FiberNet Telecom Group Inc (Google  Yahoo  Earnings  Chart
GMO,Idaho General Mines Inc (Google  Yahoo  Earnings  Chart
HGO,Houston American Energy Corp (Google  Yahoo  Earnings  Chart
OFI,Overhill Farms Inc (Google  Yahoo  Earnings  Chart
PAE,Peace Arch Entmt Grp Inc (Google  Yahoo  Earnings  Chart
PRXI,Premier Exhibitions Inc (Google  Yahoo  Earnings  Chart
REFR,Research Frontiers Inc (Google  Yahoo  Earnings  Chart
RRI,Reliant Energy Inc (Google  Yahoo  Earnings  Chart
SIGA,Siga Pharmaceuticals Inc (Google  Yahoo  Earnings  Chart
SNCI,Sonic Innovations Inc (Google  Yahoo  Earnings  Chart
SNDA,Shanda Interactive Ent Ltd (Google  Yahoo  Earnings  Chart
TSL,Trina Solar Ltd. (Google  Yahoo  Earnings  Chart
URZ,Uranerz Energy Corp (Google  Yahoo  Earnings  Chart
VII,Vicon Industries Inc (Google  Yahoo  Earnings  Chart
VYYO,Vyyo Incorporated (Google  Yahoo  Earnings  Chart


gosu said...

As I had mentioned before:
1) Markets go down till March 16, 2007. (options expiration)
2) Markets go up till March 31, 2007 (End of Quarter)
3) Markets go down again after March 31 till April 17, 2007.

- Gosu

NO DooDahs said...

CECE moved quick from up to down. Earnings miss, but a big increase nonetheless, and revenue exceeded estimates. I'm waiting for the conference call to see what happens ...

Pradeep Bonde said...

CECE had doubled since its last earnings. That is one of the reason to use the 65 day consolidation/weakness filter. While long strength is good, near term strength is not good for fresh entry.
I find many times you are buying stocks near top. I do not understand how your model works but my research shows better entries are after a near term consolidation , especially on high relative strength plays.

F. said...

Not the best time to be going short. Your are fighting a strong market.