While there is nothing new tonight there are still three stocks that are setting up in perfect short positions with their price action. All of them have volume problems but there initial breakdown was on heavy volume so this is a retest and I can allow the volume requirements to be lax when the reward/risk ratio is so good on all of these. I am still not loading up on anything tonight. It still is not time, especially with the low volume and the New Year’s celebrations upon us. Be careful out there and say a prayer for all of those who love freedom and are either Pakistani or from Pakistan. Today was tragic and puts stock trading in perspective after you learn the life of this woman. But that is not what this site is about so let’s get to the charts.
new short positions: none
adding to existing short positions: GS CCMP MSTR
GS is failing at the 50 day moving average and now breaking down below the 200 day moving average, on low volume. This stock does have low volume now but the price and BOP are very bearish with price showing some very weak action at resistance points and BOP staying red during the low volume rally. Cut your loss with a close above the 50 day moving average, if the stock does not move lower immediately.
CCMP is failing and breaking down right at the downtrending 50 day moving average and the 200 day moving average, on low volume. This stock has low volume on the failure today but had lower volume on the rally higher and the initial short signal was on very large volume so the signal is good. BOP remains below the zero line and could go red again tomorrow if stocks continue to selloff. If the stock doesn’t work out there is not much room for error as our cut loss area is very close. The reward/risk ratio is wonderful on this setup. Cut your loss with a close above the 50/200 day moving average, if the stock does not move lower immediately.
MSTR is failing at the 50 day moving average and breaking down below the 200 day moving average, on slightly below average volume. This stock is still showing higher lows since mid December but the resistance at the 50 and 200 day moving averages have been very solid. With the market appearing to want to weaken with a pickup in volume, this stock is setup nicely in a good reward/risk ratio making it worth another poke on the short side. Cut your first loss with a close above the 200 day moving average and your final loss with a close above the 50 day moving average, if the stock does not move lower immediately.
