Right Side of the Chart

...because anything to the left is history
Mar 222013

These are the daily charts of the ten largest components of the Russell 2000 Index (posted in descending order by weighting).  Rarely have I even seen such screamingly bearish patterns on nearly every top component in a major, diversified index such as this.  Of course, these stocks are also extremely overbought on the daily, weekly and even monthly time frames.  Personally, I'm expecting much more than the run-of-the-mill 3-5% pullback that most pundits on the street are calling for.  As taking screen captures and annotating 10 chart takes a considerable amount of time, my notes on the charts are minimal but I believe that most of these patterns speak clearly.

Many of these charts have some horizontal or uptrend lines drawn below current prices which would act as downside targets, for those interested in shorting or even going long any of these stocks on a pullback (the former being my preference).  Although some of the stock have just recently broken below support, typically a key uptrend line, many are still within the patterns with some towards the top of the patterns/trendlines (resistance) while others are close to the lower uptrend lines (support).  Therefore, my short on the index at this time is what I refer to as an anticipatory trade (entering the trade early in anticipation of a likely breakdown).  However, more conservative or conventional traders might choose to wait until the majority of these stocks have broken below the support levels shown on these charts before taking a full position.

 March 22, 2013 12:09 pm  Equity Market Analysis Tagged with: , , , , , , , , , ,  Comments Off on $RUT Top Ten Components
Feb 252013

In reviewing the Active Short Trades category, the following trades will be removed: FCH- Exceeded the 5.50 suggested stop level shortly after it was suggested in the last video update on Jan 23rd.  For anyone still in this trade, I think that the odds are [continue reading…]

 February 25, 2013 10:51 pm  Completed Trades - Short Tagged with: , , , ,  Comments Off on Recently closed short trades
Dec 212012

I’ve received a few comments lately regarding the strength of the Russell 2000 (small caps) so I made this video to share my thoughts on the index.  I also covered the charts on the following components of that index in order to get a better [continue reading…]

 December 21, 2012 12:43 pm  Equity Market Analysis Tagged with: , , , , , , , , , , , , , , , , , , , , , ,  Comments Off on Russell 2000 video overview
Nov 052012

i have been away from the computer all day and will not be able to make anymore posts until later this evening.  in checking in quickly, i see that PCYC was down big today to hit (and exceed) the first target for a 20.7% gain [continue reading…]

 November 5, 2012 2:24 pm  Completed Trades - Short Tagged with:  Comments Off on PCYC first target hit
Oct 302012

The biotech sector remainS one of my favorite short trade ideas and I’ve put together this video covering the charts of the 14 biotech stocks that I posted on October 21st as my favorite individual shorts in the sector (click here to view that post).  [continue reading…]

 October 30, 2012 3:42 pm  Completed Trades - Short, Equity Market Analysis Tagged with: , , , , , , , , , , , , ,  Comments Off on Biotech Short Trade Ideas Video
Oct 222012

actually, i already had a position on this one going into today buy i am adding PCYC as an official active short trade idea here as it is starting to crack below this sub-uptrend line and looks to be offering an objective entry.  unfortunately, they [continue reading…]

 October 22, 2012 2:24 pm  Completed Trades - Short Tagged with:  Comments Off on shorting PCYC
Oct 212012

one of my favorite sectors to short at this time is the biotech sector.  in fact, there are so many nice charts that i really can’t pick any one or two favorites (although the recently triggered BIIB active trade is one of my top picks).  [continue reading…]

 October 21, 2012 10:45 pm  Completed Trades - Short Tagged with: , , , , , , , , , , , , , ,  Comments Off on biotech short trade ideas