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One of these charts I’m considering for a long. The other I have played on the short side and am considering another short. Which is which?
- John
February 12th, 2008 at 11:33 pm
the bottom one is the new long candidate, and you’re going to short the top one.
February 12th, 2008 at 11:44 pm
top one looks like an inverse ETF, though it might be a bond fund.
February 12th, 2008 at 11:46 pm
Never mind, the dates don’t match up.
February 13th, 2008 at 9:57 am
The bottom one looks like DRYS. I would load the torpedo bays on that one! Those shippers be taking on water. Also they have ripped the bears guts out on that one a couple of times now (assuming that is DRYS or one of the other shippers), so the time is ripe for another attack.
Also, applying Weinstein stage analysis, the shippers have worked through stage 3 now and should be setting up for the inevitable slope of hope - stage 4. Let the rally take its course and then look to execute a short sale below the 30 week. At least that is how I see those shippers.
The top one would be the long candidate, as it is about to break out to new highs, no overhead resistance, everyone is happy camper. Higher prices ahead!
(P.S. Let’s hope that’s not an inverse ETF)
February 13th, 2008 at 6:14 pm
Long in the first, short in the 2nd, duh.
February 13th, 2008 at 10:49 pm
Nice job Robert. The bottom one is DRYS. I have a couple successful shorts in it so far, covered the last one last week so avoided this runup.
The top one is CREE.
February 14th, 2008 at 11:12 am
Thanks, John. I enjoyed this post and it was interesting exercise. Thanks for taking the time to respond.
DRYS is taking the bears to the woodshed again. Interesting.
I would also look for range expansion (w/ expanding volume) to the upside, with a close on the lows before executing a short sale on DRYS. We need some further attempts to auction higher that result in failure.
Once no further business can be accomplished in that direction, the move should be lower. High volume, range expansion, close on the lows, all of those things would help to suggest that the MM are selling into the move and the auction lower can begin.
How does everyone else see this one? What would you look for before executing a short sale with respect to DRYS?