While Matt, Steve and other members
here have the best charts and advice, it's always possible to find
other good setups with even free newsletters like this, or other
pages on the web. You just have to do additional TA using
your own chart indicators and various timeframes to see if the
patterns shown are legitimate, and have a good possibility of
follow-through in the future. I agree that their market
analysis is frequently hedged, but just looking at these 4 stock
charts, 2 are breaking down out of triangles, and the other 2 are
under previous support/now resistance. so 1, 2, or all 4 could
be good possible short trades if they play
out.
I agree with this analysis in the
newsletter: "The past few days have seen some distribution, and
although the uptrend has remained firmly in place, it may be a good
time to reduce long exposure. One way to do this is by
increasingshortexposure, and the best types of
stocks to focus on in this case are stocks that have been
unable to participate in the recent strength. This lack of
participation shows an unwillingness on the part
of institutional investors to back such stocks, even at a
time when risk-taking is being rewarded. Several stocks remain under
importantbasesdespite the strength shown by the
general indexes. While many traders tend to attempt picking a top
in runaway stocks, the safer play is to focus on stocks already
showing weakness." Matt and Steve have
pointed out here the flaws of calling tops or bottoms in the gold
market or general market, so the above wording seems to agree
with that philosophy. Have also seen several of the
best traders here consistently hedged, with some long, some short
trades to withstand the big swings in the market and huge gaps up
and down we've seen sometimes 2-3 times a week before the market
opens since April, which seems to be increasing again
recently.
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4 short trade ideas look like good possiblilties
Investopedia/Chart Advisor - 4 Weak Stocks in a Strong Market
Posted by curtis on 21st of Oct 2010 at 06:15 am
While Matt, Steve and other members here have the best charts and advice, it's always possible to find other good setups with even free newsletters like this, or other pages on the web. You just have to do additional TA using your own chart indicators and various timeframes to see if the patterns shown are legitimate, and have a good possibility of follow-through in the future. I agree that their market analysis is frequently hedged, but just looking at these 4 stock charts, 2 are breaking down out of triangles, and the other 2 are under previous support/now resistance. so 1, 2, or all 4 could be good possible short trades if they play out.
I agree with this analysis in the newsletter: "The past few days have seen some distribution, and although the uptrend has remained firmly in place, it may be a good time to reduce long exposure. One way to do this is by increasing short exposure, and the best types of stocks to focus on in this case are stocks that have been unable to participate in the recent strength. This lack of participation shows an unwillingness on the part of institutional investors to back such stocks, even at a time when risk-taking is being rewarded. Several stocks remain under important bases despite the strength shown by the general indexes. While many traders tend to attempt picking a top in runaway stocks, the safer play is to focus on stocks already showing weakness." Matt and Steve have pointed out here the flaws of calling tops or bottoms in the gold market or general market, so the above wording seems to agree with that philosophy. Have also seen several of the best traders here consistently hedged, with some long, some short trades to withstand the big swings in the market and huge gaps up and down we've seen sometimes 2-3 times a week before the market opens since April, which seems to be increasing again recently.