Tuesday, March 22, 2011

Chart of the Day

I posted a a list of long setups earlier in the day today. Make no mistake, I am long on the markets here but there is something that makes me uneasy being overly long here. For some reason, I don't feel as bullish as I normally would after a day like today. I think that has something to do with the markets currently being driven by news. Bad news and these markets could turn 180 degrees in no time. So, in the spirit of being prepared, I decided to look for short candidates and the first obvious place to look was the long/short watchlist I had posted this weekend. 
Most of the short candidates bounced on low volume today, but what else would you expect on a 180 point up day. But there was one stock that stuck out like a sore thumb and that makes it our Chart of the Day for today. I won't ask you to guess the name of this stock as that would be a pretty lame pun. But its not good if an already broken down stock can't bounce on a day like today. I like it a short on break of Thursday's lows.

Take care and good luck!


bill said...

i hate to be "that guy" but i think its "overly", but good post anyway. markets can't possibly be sitting well with bears or bulls right now at all, are we in the middle of malaise? or is this just a pause before the drop? i can't see many being very bullish with the run-up and stall at least until 1st qutr earnings start releasing and then im guessing that won't translate into much positive or negative either. it feels like we are all waiting for the music to stop so we can dash for a chair.

positiontrader said...

lol. Thanks for pointing that out Bill. I think this is a pause before a big move up or down. With all the news in the air, chances are that this big move will be in form of a gap up or gap down. On my part, all I can do is reduce my overnight exposure. And what the market does after that is something not in my control, and hence no point worrying about it. Simple, isn't it?

BTW, I have a gut feeling it will be a move down but I am not a betting man.