Many good short sell set ups

Many good short sell set ups

March 23, 2007

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)