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)

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

4 comments:

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
http://www.realhedgefund.com; Mar 23, 2007, 7:40:00 AM
nodoodahs 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 ...; Mar 23, 2007, 2:38:00 PM
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.; Mar 23, 2007, 3:37:00 PM
Unknown said...: Not the best time to be going short. Your are fighting a strong market.; Mar 23, 2007, 4:10:00 PM

404

Recent Articles