Yesterday I went short 600 shares
STP (Suntech Power Holdings Co.) at $25.77. The bearish engulfing pattern worked out great, so I sold 300 shares at $24.75 for a $300 gain (+4.1%). I'm still short 300 shares, although the stock is showing a little strength this morning.
According to
Volume Spread Analysis, a long bullish looking bar bumping into resistance on abnormally high volume is a good shorting opportunity. This chart of
NVDA (NVIDIA Corp.) is a perfect setup. I went short 300 shares and have a stop placed just above resistance.
8 comments:
BA pulled the same thing...
Good job with the charts!
I think MON is setting up to be a great short - topping red flags there...
I'm curious to know your thoughts...
Thanks!
same goes for BAM and COF
WMT pulled one also
bullish or bearish HARAMI on SNDK?
The only stock that you mentioned that's on my current watchlist is SNDK. I can't take a bullish or bearish position until it crosses a significant S/R. If it breaks the 200 day MA and pushes past 60, I'd be bullish. If it falters at these levels, I think it's in for a nose dive and I'll be ready to short.
I also pay attention to BA and WMT, but don't trade them.
Walter,
You asked about the "harami". While I am a proponent of candlesticks, I think they are best used at important points (S/R, MA, etc). The formation you pointed to is in "mo man's land", so it's not as relevant for *my* purposes. Others, like yourself, may have a great strategy that works at other levels, but I don't.
Best!
regarding candlesticks, i have read that... i am relatively new to them and am excited about that because i think that you can read a lot from the price/volume mechanics of a stock on daily basis... that being said, i was using those open/close bars before but now use candles...
otherwise, i prefer trenline analysis (aka Tim Knight) and will turn to indicators, when close to support/resistance, TLs, etc
thanks
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