Theory: By the time a stock makes it to page 1 of Investor’s Business Daily, its time to short. Almost like fading Cramer’s picks. Also, by the time stocks reach the top 5 of the IBD 100, profit-taking is very likely.
Short Page 1 Picks (5-day chart):
American Science & Engineering, Inc. American Science & Engineering, Inc. American Science & Engineering, Inc. [[asei]] Computer Programs & Systems, Inc. Computer Programs & Systems, Inc. Computer Programs & Systems, Inc. [[cpsi]] California Water Service Group [[cwt]] Aon Corporation [[aoc]] IDACORP, Inc. [[ida]]
Short IBD-Top 5 Picks (5-day chart):
Almost Family, Inc. [[AFAM]]American Public Education, Inc. [[APEI]]Emergent BioSolutions Inc. [[EBS]]EZCORP, Inc. [[EZPW]]Southwestern Energy Company [[SWN]]
Best setup: Volume declining versus past two days.
Time frame: Very short. Overnight hold, to 4-day swing trade.
-gio-
the Contrarian Surfer
I agree partially.
I think that’s true right now, but if we were in the retard dot comb euphoria that would be the opposite.
People are much quicker to take profits now, where as before they “doubled down” and right now they are “playing scared” As long as that keeps up, avoid buying the breakouts and sell the rips.
I don’t know if they are quite in the opposite dot come where they get so fearful they sell things and keep on selling, and the short sellers are going crazy and continuing to buy inverse etfs and short stocks as the market crashes, even if you would say they are still in panic mode for much longer, but if you believe they are and that it will continue sell the breakdowns.