Nice Selloff | stockbee


Nice Selloff

As of now we are approaching 400 figures on the 4% breakdowns. Not only that but several leaders which were creeping up in last few weeks and bucking the trend are breaking down. AAPL being the prime example. When the bellcows start having problem, you should take the move seriously. The question is how far we will go. Will there be more 200 plus downside days in next couple of days. But sell offs like these after multi month rallies are good to set the market ups for further up move, probably post October.

So today OB Part 2 will appear before OB Part1.


Tom said...

Do you think it makes sense to day-trade the Ultra-Short/Long ETFs in this volatility rather than picking stocks? QID, TWM, SDS, DXD, DDM, SSO, QLD. Seems like a simpler approach with all the risk out there.

Stock Market Detective (SMD) said...

The July slide is just beginning.
One of the biggest slides we will see in next 2 months.

Shorting the Home builders,Banks, and Brokerage houses.
QID is a good choice.

65Trader said...

I disagree, I think a bounce is around the corner and bears will be toast again. I guess we'll see.

christmasfern said...

I like SJH (russell 2k value 200% short). If i was going to bet on downside i would just own it for a couple months or so.

Im on vacation until the market looks better again so im not buying, shorting, or doing anything personally.

Stock Market Detective (SMD) said...

The last time I seen a (BUY SIGNAL) on the DJIA was July 19th,2006.

Just in the last 3 days it has given me a major (SELL SIGNAL). This to me is a major top we just had with months of distribution at the top.

Joe said...


As a short strategy, can you recommend "inverse Pradeep IBD200 strategy"? Like: take bottom IBD200 list and sell short any stock after a 2% breakdown under higher volume? - You once mentioned just inverse strategy for shorts does not always work.

Also, do you still trade "son of double trouble" or only original DT strategy?

Thanks, Joe

Anonymous said...

i think personally is a sell off due, a lot of stocks are kind of extended, so the correction was expected, the way i see it is good, because it means lot of new opportunities are going to surface, maybe new leaders and i ll be waiting for them, because when they take off, they take off violently and i think Mr Market is setting itself up for the next round, the so call 3rd qtr upswing where a lot of winners are, just look at charts and history

Anonymous said...

You picked up a good time frame to go in vacation, Pradeep, hope you and your family enjoy it very much, i know we will miss you, but i know skytrader will do a good job and we will be waiting for your comments when you come back, so enjoy it

Pradeep Bonde said...

Some stocks from Inverse IBD 200 work
But remember in structure term in market there are value investors sitting at some level, so stocks do not go down as much as their fundamentals would indicate, because many businesses being cyclical bad earnings are followed by good. So yes one can trade it but it requires considerable more skills.
Son of Double Trouble candidates are sub set of Double Trouble. SDT I designed for those who do not know how to reduce 20 candidates to 1 to 2

curt504 said...

Anyone recommend a site that tracks earnings exceeds, meets, lags forcast? How are the announcements doing so far?