Well its been nasty the last few days. We have broken all support levels except one the $spy 108. Everything else is breached. If you look at the selling the last month. What do you see. On up days the volume is very small indicating only the retail traders were trading on those days. LOOK at the huge volume on the down days compared. Much bigger, indicating the major players have been selling their shares (distribution). The chart says that we should bounce. My personal estimate is the bounce will be light with low volume. What we need to measure to see if the bounce is a reversal is the gusto of the trading if we do get an up day. Is there furious buying? When your buying a stock do you have to keep upping your bid just to get a fill. Or is the action light? The volume and the breadth of the rally will be key (do all sectors participate or just a few)
Right now as I see it. If we bounce lightly or weakly it will be time to be adding shorts to our ports to hedge all our plays.
Many traders have indicated they can not trade as fast as what goes on live in the boom room.
Im going to make a list of stocks that anybody can trade whether your at the computer or not. These are all great setups for anytype of trader.
Short List: Bear Flags or stocks to short on Deat Cat Bounce (low volume weak bounce)
$amtd Look at the volume distribution on this stock. It clearly has broken all levels of support. Nasty selling. If we get a low volume bounce up towards the 200dma and the price resistance. This stock can be shorted.
$aks – Bear Flag same setup guys. These are very easy. Bear Flags are the best shorts for new trader. Short near the resistance. Set a stop right above
Short on breakdown of last support. Got a lot of airspace underneath
Pullbacks within strong trends
This is an easy play. Stock strong in uptrend. Pulled back to support. It was an orderly pullback. Been consolidating while the market getting hammered. I would take a postion here or as close to as 100 as you can get and put a stop 99.00 ish. Tighter if you want to change your risk to reward levels. 1st target 106. 2nd target 110
Trend pullback to support. Volume pattern very bullish. Indicates Accumulation
Love this stock. LOOk how strong its been even in this manic market. Might not pullback to support so even a little weakness this could be an add. Check out volume pattern and relative strenght of its price last few days!!!!!!!!!!!!!!!
Rubberband snapback Plays
Copper getting busted with China going down last few weeks. If you believe in a 2010 recovery along with commodities pricing going up then this might be a great chance and a last chance to add $pcu at a great price but also in a matter that sets up a nasty nasty snapback.
look at the freefall. Very steep. Stochastics hitting extreme oversold levels. Its sitting right on support so that will mititgate your risk. Stop at 26.90 or so will give you less than 1 dollar risk. This is a stock i plan on adding to my IRA and my parents.
Here is a stock i added in all my accounts. Love it. Check its news http://finance.yahoo.com/q?s=apwr
Company is signing new contracts all the time. They are partnered with General Electric for many of its projects.
They just did a private placement with some huge institutions at the 14 level. At 12.50 or lower I love it.
On the fundamental longterm side. I LOVE $zstn in low 8s (8.50 or under) and $trit in the Low 14s. (14.50 or under)
If you like OIL. As i do. These dips are a great time to add oil stocks. An easy way to get exposure to oil for quick trades is $uco that is the double etf for oil
Look at what happens to this everytime it has a major dip. See how violent the snapback is. Some of these snapbacks are 50%!!!! They are violent and quick.
ON the oil front I really like $ftk. Im noticing some weird orders coming in after hours in some big blocks. Some type of foolery is going on.
Im looking to add this in the 1.4s
Regional Banks are hot. These are tough to plan for as momo trading is often on the gut on the fly.
$uwbk and $smtb look interesting. LOOk for my call to enter.
Still like $nlst on all pullbacks. Great news yesterday. This company has big shorts in it. It looks like it has reversed. Im adding on dips under 4 bucks.