Shorting Bank of Amerika

As you know, I hate Bank of Amerika. This article should outline a few of my reasons: Bank of Amerika

Anyway, while it is generally not a good practice to short a company, due to sheer hate of them, I am making a small exception here. I have been watching for Bank of America Corporation [[BAC]] to show signs of some weakness, so I could start a short position, without shorting it only because I hate them.

Lets look at the chart…

BAC roared off the Fed. induced, SEC manipulated, July bottom, due to a huge short-covering rally. We can see that its advanced has stalled, midway between the 50 and 200 day averages, and just under multi-month resistance.

MACD is getting ready to cross, and RSI2 is in a neutral zone.

Despite the markets roaring ahead the past week or so, you can see BAC has done nothing. With the downtrend still firmly in place, I think BAC revisits the 50 day average, or hopefully worse.

With these things in mind, on Friday, I began buying puts on BAC, near the HOD. I did not bother trying to short it, with all the SEC no-short shenanigans.

I will look to sell my puts on any pause at the 50 day average. A break above 34.00 will have me reconsider this position.

Comments »

$INDU 50 day average = 11680

$COMP 50 day average = 2354. The Nasdaq is fast approaching its 200 day average, from below.

The S&P 500 is just below its 50 day average which is 1297.

Comments »

Breakouts have worked well in this market, since the July low. Here is what breakouts I’m holding.

Ameron International Corporation [[AMN]]

Badger Meter, Inc. [[BMI]]

Covance Inc. [[CVD]]

H&R Block, Inc. H&R Block, Inc. [[HRB]]

General Mills, Inc. [[GIS]]

Marten Transport, Ltd [[MRTN]]

Premiere Global Services, Inc. [[PGI]]

Tyler Technologies, Inc. [[TYL]]

United Therapeutics Corporation [[UTHR]]

Pharmasset, Inc. [[VRUS]]

When trading breakouts in this volatile environment, be sure to have smaller positions with wider stops.

Comments »

Rob Hanna, former writer for TradingMarkets, has been publishing some fantastic work on his blog, Quantifiable Edges.

I strongly encourage you to stop by and check out his blog. His style is original, his prose is succint, and his studies will help you get an edge in this market. 

Comments »

Buylo got long the India ETN [[INP]] and asked for some analysis.

Overall, INP looks like it has put in an intermediate term bottom. If I were long here, I would be looking for the run to continue to $75, where I would want to take some or all of my profits. I believe INP will encounter resistance at the 200 day.

Before I would buy INP here, I want to see a pullback, possibly to as low as the 50 day average at $58.00. At the very least, I want to see some of the overbought worked off the RSI2 before buying.

Note the bullish divergence in the MACD in June and July. That is one of the best ways to use the MACD, in my opinion. Also note the great volume at the bottom, the huge money flow, and the series of higher highs and higher lows.

Comments »

Stocks continue to breakout from strong bases.

Covance Inc. [[CVD]] This one has been a good winner for me, as I have been long it since $88.30. Phil from Brazil initially brought it to my attention, and then it showed up on another screen. Now, CVD has begun to show up on ATR breakout and momo screens.

Mindray Medical International Limited [[MR]] Great volume on this move. Above $44.00 and MR will have cleared an 11 month base.

Waste Connections, Inc. [[WCN]] Very pretty cup with handle here. Truly, trash is rising to the top.

Comments »

Certainly was a great day for new breakouts. I may have to sell some of my laggard breakouts from a couple of weeks ago and add a few of these.

American Medical Systems Holdings, Inc. [[AMMD]] Unless you’ve been visiting Mars, you know this sector is HOT.

Advance Auto Parts, Inc. [[AAP]] Nice test of the May breakout level, and a recent test of the 50 day.

China Medical Technologies, Inc. (ADR) [[CMED]] I included this one as it did breakout today, although the chart ain’t so purty. Also, Cajun and Phil like it. As you know, hot sector.

[[IHI]] I wish I would have known 2 weeks ago about this ETF.

[[MASI]] reported tonight. Looks like the beat and raised. Definitely one to keep an eye on. Again, hot sector…Masimo Corporation engages in the development, licensing, and marketing of advanced signal processing technologies and products for the noninvasive monitoring of vital signs.

[[MCD]] All you skinny bitches out there need to go eat couple of fucking cheesburgers. Period. Nice looking chart.

Wal-Mart Stores, Inc. [[WMT]] Gorgeous breakout. However, I’m not sure I can own WMT. I may give it some $$$ anyway.

Sigma-Aldrich Corporation [[SIAL]] Another fantastic looking breakout.

Good luck out there folks. Remember, use larger stops, and buy smaller positions.

Comments »