Sledding Early This Year

Really late to the party but being welcomed still. Shorted RUT by buying RUT short etf [[SJH]]

We exited [[spy]] short for a nice 41 minute gain of $327.25 (excluding commissions) .

Still holding [[DTG]] short, cracking ever so slightly.

UDATE:

Sold SJH for a $116 gain excluding commissions.

We just shorted 350 shares of [[spy]] on continually weakening internals. Planning this to be intraday only. Average price 105.015.

Those following me on twitter got this message approx 6 minutes ago.

[youtube:http://www.youtube.com/watch?v=einZgVrnfG0&feature=related 400 300]

High level meetings involving myself, the lovely and talented traders on the Coach’s trading desk, and two of our top clients are scheduled for 8:30am this morning. Because we expect the meetings to run approximately 1 hour past the opening bell, we have the following orders placed to exit partial portions of our [[dtg]] short trade.

Buy to cover 500 shares at 18.46
Buy to cover 250 shares at 18.10

This would leave 250 shares without a target order.

Good luck today everyone. Make sure you stretch before you start trading.

I thought home builders died off with the dinosaurs when a meteor hit the earth millions of years ago. And here I have come across a entire list of home building companies that are somehow clinging to life. Sorry to say that the near term prognosis for this group is not a good one, particularly for Lennar Corporation [[len]] .

The stock’s price sits at the bottom of a descending triangle. Yesterday it barley showed any sign of life in a rampant buying spree on wall street. We have also illustrated the bearish divergence taking place. In July, the AD Line was at the same level it is now. However, back in July, price was much lower. This is divergence and means that the current higher price does not have the level of internal support needed to maintain it’s current price level. We will short this stock at 12.54 with a stop at 13.34.

Now for all of you who just have to have a long play, here is General Mills, Inc. [[GIS]] . It’s the best we could do after scanning hundreds of stock charts.

GIS has shown some relative strength throughout the recent 3 day decline so it would only be natural that it would bolt higher during a rally like yesterday’s. If there is follow through by the market to the upside today, we will consider an entry in the stock at 66.96 with a stop at 64.98. If the break higher occurs, we would like to see the AD Line break to new highs as well.

For various reasons, like a pullback in the U.S. Dolla Dolla Bill, the market bounced like a super ball today. No denying that. But I am standing behind my statement that we have seen the high for the year (SPX 1103). If I’m wrong, who cares, as we trade whatever ultimately happens the right way.

What is interesting to me is that we had 2 shorts going into today’s trading, and closed the day up quite nicely thank you very much. We didn’t fool around with Baidu.com, Inc. (ADR) [[bidu]] and exited within the first minutes of trading as prices were hopping around like kangaroos on crack.

What are we looking for now? Because we are operating off a thesis that the market will not make new highs, we are searching charts for stocks that performed horribly in the teeth of a buying wave the size of which you can only find at Jaws Beach in Maui.

[[dtg]] is a perfect example of the kind of stocks we are looking for. Damn thing skunked the bulls today and we actually like our short position more today than we did yesterday. There has to be a few more out there like this one, so we are off to The PPT to find some.

Don’t get me wrong, we have plenty of cash to grab some longs for short term trades too. So we may just post later tonight with one for the bulls and one for the bears.