Well, I did not expect todays strong rally after yesterdays negative performance. Markets are mixed . What to trade ? Definitely Nasdaq100 is long biased - big technology stocks are leading market.
On the other side there are several laggards. Stocks like CME or DNA look weak and are possible stock pick for short into rally near important resistances.
I noticed this stock after my 52week low scan produced results today. This stock is looking like nobody is interested in buying . It is consolidating near local support level in 63 area. Possible breakdown of this support could lead easily to move to 60 USD area
I cannot help myself but I am still more bearish then bullish on US stocks. So I look for shorting opportunities.
One example is Oil stock COP. It presents relative weakness to Energy sector. I think that COP could be first dropping hard if there will be sign of some weakness in Energy sector. Therefore I am monitoring this stock very closely.
I monitor XLE for possible short trade as I feel from XLE chart that it can drop down hard. I probably will use DUG - UltraShort Energy Sector ETF to this swing trade.
And XOM and COP stocks in this sector are laggards. Here is chart of COP. There is forming head and shoulders chart pattern. Bearish indication. Any move into 78 - 80 area represents nice short opportunity with very good risk reward ratio. Possible targets for such swing stock trade or position trade could be near 60 USD area.
During my todays after market stock chart analysis and ETF chart analysis I noticed bearish development in Utilities sector.
And ETR stock chart is very good example. There is bearish chart pattern visible on the chart. It offer nice short swing trade setup.
Also ETF chart of Utilities sector ETF (XLU) is bearish with heavy press on important support.
I have AKAM in my watch list for possible short trades. I just noticed that its chart looks promising and AKAM could make drop to 26 area.
I monitor FDX for possible short swing trade. If it will breakdown chart pattern, I will want to enter new short trade.
I monitor stock with symbol INP. It is stock I use as India ETF tracking stock.
It is developing bearish pattern near its 200SMA. Will watch for possible short entry.
Especially Nasdaq-100 index is moving sideways in range. Still not able to move over 20EMA. This is not good sign for bulls. technologies are not bought by large investors.
And it means that they are still good for short trades. I traded GOOG 3 times during last 2 weeks and made nice profits on this stock. I plan to short this stock again in every rally to 500 (previous support, now resistance).
Also stocks like AMZN, EBAY, EQIX are good opportunities for possible short swing trades
As I mentioned in my newsletter Nasdaq-100 is weakest market index . And it was Nasdaq-100 which was first in red yesterday.
I had GOOG on my short trade setup list and I entered trade yesterday. It was sold off right from first minute of trading. So I use 5min low strategy to enter partial of position and then my trade setup entry point for rest of position. I am now short GOOG and I expect that it will break down 500 and will go lower to 360 - 420 levels.
