Some Ripe Short Setups

Plug these in to your favorite charting program and take a look.

DECK

EWBC

BLC

PEI

CAAS

JDSU

OCLR

BC

FST

CRUS

Can’t Bring Myself To Buy This Strength

Still sitting here, waiting for a pullback to get long. I increased my short exposure slightly yesterday.

At some point, I’m going to have to pull the trigger and either hedge these shorts with some longs, or just cover them. If I were going to get long, I’d be looking at the following stocks:

ivan

[[IVAN]]

alksAlkermes, Inc. [[ALKS]]

exxid [[EXXID]]

A Sexy Short Setup

Let me be clear. I think the market is rolling over, and will continue rolling over, until it stops rolling over. When it might stop is too hard to accurately forecast at this point, but if I were forced to guess, I’d look for support near 96 on the SPY, or about 8% lower from today’s close.

Thus, I want some short exposure. Unfortunately, consistently out-performing short-only systems are very hard to come by, and so I’m left with having not enough short exposure, or I will have to make a few discretionary trades.

I’m opting for a few discretionary shorts.

My current favorite is [[IYR]] .

iyr

I like that IYR has been denied 3 times at the 50 day average and the declining downtrend line.

A stop above 42 and a profit target near 37 gives a risk/reward ratio of 2:3.

Here are the top holdings of IYR. If you look at the constituent charts, you’ll note that most of them are juicy as well.

Buying the Dip?

Here is where I’d start looking…

ADC Telecommunications [[ADCT]]

Aetna Inc. [[AET]]

C.H. Robinson Worldwide, Inc. [[CHRW]]

Deutsche Bank AG (USA) [[DB]]

DPL Inc. [[DPL]]

DTE Energy Company [[DTE]]

DexCom, Inc. [[DXCM]]

Great Plains Energy Incorporated [[GXP]]

Gildan Activewear Inc. (USA) [[GIL]]

[[IWM]] , [[IWN]] , [[IWO]]

Kodiak Oil & Gas Corp. Kodiak Oil & Gas Corp. [[KOG]]

Leggett & Platt, Inc. Leggett & Platt, Inc. [[LEG]]

Northeast Utilities System [[NU]]

[[OIH]]

Oracle Corporation [[ORCL]]

Pengrowth Energy Trust (USA) [[PGH]]

Echostar Corporation [[SATS]]

Sensient Technologies Corporation [[SXT]]

Southern Union Company [[SUG]]

[[SXCI]]

Tellabs, Inc. [[TLAB]]

[[TNA]] , [[UWM]]

The Valspar Corporation [[VAL]]

[[XLU]]

Imagine how quick and easy it would be to look at each of these symbols using a hover chart…Well, now you can. Just download Microsoft’s Silverlight: http://www.microsoft.com/silverlight/get-started/install/default.aspx

Voila!

Extreme RSI(2) Screen

I am experimenting with some screens that will identify stocks that are overbought on multiple time frames.

The screen below finds stocks with a RSI(2) reading above 99, and then calculates the distance the stock is in percentage terms above the 10 day moving average.

I don’t know that there is an edge to shorting stocks with both an extreme RSI(2) and price stretched above the 10 day. In fact, it might be a better long setup.  Anyway, today’s screen turned up some interesting charts, for both longs and shorts.

Here are the results below. Volume is the 10 day moving average of volume and Distance is the distance the stock is stretched (in percentage terms) above the 10 day moving average.

Extremely Overbought Stocks

Below is a list of stocks with a RSI(2) reading above 99. If the market reverses tomorrow, I suspect these names will be hit with profit-taking, as they should be after the runs they’ve had.

However, with dip-buyers running rampant, I would not want to overstay my welcome, were I to short some of these names.

Please click twice on the list to see it much larger.

Three Pullbacks for Monday

The beatings for shorts will continue, it seems, forever. I have been trying to short a strong close, into extreme overbought conditions, and have been trying to buy a weak close, into extreme oversold conditions. Unfortunately, it seems that Mother Market knows my playbook and refuses to give me any kind of extreme conditions to play.

Oh well, the market keeps going up, so I will keep looking to buy pullbacks. Here are three for Monday.

[[ARST]] Nice accumulation on volume. Its obvious that volume on up days is overwhelming volume on down days.

Is it time for this one to roll over, and consolidate? Or, does ARST have another bounce ahead?

[[JOSB]] doesn’t have quite the accumulation on volume as ARST. However, this is the first pullback after a huge gap-n-run.

[[PFCB]] is in the middle of a really interesting looking pullback. I love it when a stock breaks out, and then tests the breakout pivot. Unless the volume surge was only shorts covering, this one might see some buyers move back in soon.

Some Ripe Short Setups

Plug these in to your favorite charting program and take a look.

DECK

EWBC

BLC

PEI

CAAS

JDSU

OCLR

BC

FST

CRUS

Can’t Bring Myself To Buy This Strength

Still sitting here, waiting for a pullback to get long. I increased my short exposure slightly yesterday.

At some point, I’m going to have to pull the trigger and either hedge these shorts with some longs, or just cover them. If I were going to get long, I’d be looking at the following stocks:

ivan

[[IVAN]]

alksAlkermes, Inc. [[ALKS]]

exxid [[EXXID]]

A Sexy Short Setup

Let me be clear. I think the market is rolling over, and will continue rolling over, until it stops rolling over. When it might stop is too hard to accurately forecast at this point, but if I were forced to guess, I’d look for support near 96 on the SPY, or about 8% lower from today’s close.

Thus, I want some short exposure. Unfortunately, consistently out-performing short-only systems are very hard to come by, and so I’m left with having not enough short exposure, or I will have to make a few discretionary trades.

I’m opting for a few discretionary shorts.

My current favorite is [[IYR]] .

iyr

I like that IYR has been denied 3 times at the 50 day average and the declining downtrend line.

A stop above 42 and a profit target near 37 gives a risk/reward ratio of 2:3.

Here are the top holdings of IYR. If you look at the constituent charts, you’ll note that most of them are juicy as well.

Buying the Dip?

Here is where I’d start looking…

ADC Telecommunications [[ADCT]]

Aetna Inc. [[AET]]

C.H. Robinson Worldwide, Inc. [[CHRW]]

Deutsche Bank AG (USA) [[DB]]

DPL Inc. [[DPL]]

DTE Energy Company [[DTE]]

DexCom, Inc. [[DXCM]]

Great Plains Energy Incorporated [[GXP]]

Gildan Activewear Inc. (USA) [[GIL]]

[[IWM]] , [[IWN]] , [[IWO]]

Kodiak Oil & Gas Corp. Kodiak Oil & Gas Corp. [[KOG]]

Leggett & Platt, Inc. Leggett & Platt, Inc. [[LEG]]

Northeast Utilities System [[NU]]

[[OIH]]

Oracle Corporation [[ORCL]]

Pengrowth Energy Trust (USA) [[PGH]]

Echostar Corporation [[SATS]]

Sensient Technologies Corporation [[SXT]]

Southern Union Company [[SUG]]

[[SXCI]]

Tellabs, Inc. [[TLAB]]

[[TNA]] , [[UWM]]

The Valspar Corporation [[VAL]]

[[XLU]]

Imagine how quick and easy it would be to look at each of these symbols using a hover chart…Well, now you can. Just download Microsoft’s Silverlight: http://www.microsoft.com/silverlight/get-started/install/default.aspx

Voila!

Extreme RSI(2) Screen

I am experimenting with some screens that will identify stocks that are overbought on multiple time frames.

The screen below finds stocks with a RSI(2) reading above 99, and then calculates the distance the stock is in percentage terms above the 10 day moving average.

I don’t know that there is an edge to shorting stocks with both an extreme RSI(2) and price stretched above the 10 day. In fact, it might be a better long setup.  Anyway, today’s screen turned up some interesting charts, for both longs and shorts.

Here are the results below. Volume is the 10 day moving average of volume and Distance is the distance the stock is stretched (in percentage terms) above the 10 day moving average.

Extremely Overbought Stocks

Below is a list of stocks with a RSI(2) reading above 99. If the market reverses tomorrow, I suspect these names will be hit with profit-taking, as they should be after the runs they’ve had.

However, with dip-buyers running rampant, I would not want to overstay my welcome, were I to short some of these names.

Please click twice on the list to see it much larger.

Three Pullbacks for Monday

The beatings for shorts will continue, it seems, forever. I have been trying to short a strong close, into extreme overbought conditions, and have been trying to buy a weak close, into extreme oversold conditions. Unfortunately, it seems that Mother Market knows my playbook and refuses to give me any kind of extreme conditions to play.

Oh well, the market keeps going up, so I will keep looking to buy pullbacks. Here are three for Monday.

[[ARST]] Nice accumulation on volume. Its obvious that volume on up days is overwhelming volume on down days.

Is it time for this one to roll over, and consolidate? Or, does ARST have another bounce ahead?

[[JOSB]] doesn’t have quite the accumulation on volume as ARST. However, this is the first pullback after a huge gap-n-run.

[[PFCB]] is in the middle of a really interesting looking pullback. I love it when a stock breaks out, and then tests the breakout pivot. Unless the volume surge was only shorts covering, this one might see some buyers move back in soon.