I am shorting Industrials sector
January 30th, 2009 richkI have entered short in Dow Jones Industrial Index. I see bearish development on chart of this sector (DJUSIN). I have used Ultra short ETF tracking this index.
Using combination of technical analysis and global macro fundamental analysis to find best stock picks and ETF trading ideas for my own trading for living
Oil in strong downtrend
November 11th, 2008 richkI was prepared for decline in oil price as I described several weeks ago. I also did trade I described.
But I did not expected that down trend move will be without any pullback. As second target area is reached I think that oil can do some pullback. I would like to use this pullback to enter new short in Oil. And where is the target ? If you look into history you can find nice support area near 40USD.
Current chart pattern for Oil
AMMD stock chart analysis
September 25th, 2008 richkI received request regarding AMMD stock. It was little surprise for me because I want to trade this stock now too.
AMMD pulled back and made breakout from bullish stock chart pattern. I would like to enter trade in move above 18. But if AMMD will do pullback back to 17.50 area, then such pullback is also opportunity for low risk stock entry.
But this stock trade is against main stock market trend. So I plan to enter it with half position size only.
AMMD bullish stock chart pattern
Shorting bonds – Ultra short etf for bonds in action
September 17th, 2008 richkI feel current situation as ideal opportunity to short bonds as fear and panic moved them too much up. I use Inverse Bond ETF (Ultra Short ETF for Bonds) with symbol TBT.
I made several buys during last days.
Can Oil drop to 80 USD or less ?
September 10th, 2008 richkMy opinion is that CL futures can go not only to 100 as they did practically today but they are able to move down to 85-80 area.
From technical perspective I see huge topping pattern in CL futures with possible drop target into 60 area.
Based on current status of fear on financial markets I think drop to 80 area can be expected soon.
Any bounce to 110 – 112 level is shortable with targets mentioned above.
I plan to use DTO as Double Short Inverse ETF for Oil to trade this idea
Stock chart analysis SSRI
May 14th, 2008 richkBased on request from my reader Dave I did stock chart analysis of SSRI.
From my point of view SSRI has broken important support area between 28 – 30 . Now it is correcting back to this level acting as resistance now. So for me it is short trade opportunity with entry in area 28 – 30 and stop above 30.80. Target for short I expect near second important support level near 18 USD. This trade setup is preferably for position trade as it can develop few weeks I think. As you can see this trade setup has very good risk reward ratio.
Nasdaq dragged markets down, GOOG poised to further declines
February 20th, 2008 richkAs 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.
What is worth buying right now on stock markets?
January 18th, 2008 richkIt looks like everything is selling out. No upside correction, just selling. It takes several weeks already. I feel that entering new short trades is more risky now. The only setup I was able to find is breakdown of trendline in Telecoms ETF – TTH (Telecom HOLDR).
And is something worth buying right now ? Yes it is. I closed yesterday nice long trade in GENZ. And actively monitoring some other biotechnology stocks like GILD, MATK, MYGN and MGLN.
This biotechnology sector is really strong sector right now. Look at XBI (S$P Biotechnology ETF) or IBB (Nasdaq Bio ETF), both look bullish to me.
Consumer Services ETF short trade worked well
January 5th, 2008 richkShort trade in XLY (Consumer services ETF) worked well. As you can see it was classical example of descending triangles chart pattern (or inverse cup with handle).
I opened trade 2.1.2008 and closed yesterday right at my target – 31 area.
