Monday, May 14, 2012

Recap and Trading Plan for Tuesday, 5/15

Recap -
Heck of a day, took some early profits on $IWM and $OREX. Still hanging onto some short $IWM. Looking to short aapl when it breaks the 555 barrier on heavy volume. The market is rolling over. Many traders are FINALLY starting to see the head and shoulders pattern I've been showing my readers for a while now. Whenever that pattern looks like its forming its safest to step aside and wait or short. Anyway, lets see if we have a few good ones for tomorrow!

After looking at some charts, the indexes didn't do us justice today. Many underlying stocks (big ones) breaking down hard today. Look for a lot more downside in the near term.

Trading Plan for Tuesday, 5/15 -

  • AAPL - Man, does this one look BAD! If we lose 555 there is a small support at 548, below that we have 515! If greece exits the eurozone quickly, there is a scenario here for sub $500. I see many experienced traders saying they're disappointed with aapl, I'm not! it's been great. Nothing goes up forever and the only way you become disappointed is when you ride it down.
  • AMZN - As this one gets closer to the 220 marker, if volume dries up I'll grab a few long with this support as a stop
  • AZO - This leader is breaking down on considerable volume, one could have nibbled short at the 50d break, next short point when breaks this lower support on volume (to fill the gap)
  • BIDU - Possible double bottom, volume lightened up today... keep on watch... if you want to short you can if it breaks todays low on heavy volume.
  • BIIB - Made new highs today, volume lacking. wait for some conviction (volume) to take a new long position here.
  • DE - Breaking down on heavy volume, dead. I'll grab some short tomorrow (if I remember lol).
  • GLD - Breaking this next support on good volume... ruh-roh... the glenn beck gold bubble may be about to burst ;) lol
  • LGF - Consolidating here, this one is playable either way, but the volume is leaning to break the upper resistance.
  • LVS - Breaking this support on heavy volume
  • MCD - Great short opp here, this one has a lot more downside to come. Broke down on heavy volume. Could see 83's soon.
  • NX - Might be a good bounce play here, big downward movement on light volume. Use trend line as a stop if this suits your strategy. The caution here is that the market is breaking down, bounce plays will probably be short lived until we make a market bottom.
  • ORLY - Looks like it wants to break this trend line.... be ready to short if/when it does.
  • PEET - Just want to post this chart, it's a PERFECT example of a double top... looks poised to take out the 200d
  • SJM - Nice bounce here, but unless it can clear that upper trend line on heavy volume it's headed down.
  • WFC - Wants to test the strength of this trend line, keep on watch...
  • ZAGG - I may nibble a few short here... looking like a setup for lower prices...
Charts - 














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