Sunday, March 30, 2008

A Few Weekend Charts

Not a lot out there based on my scans this weekend, so I will likely be sitting on my hands for the next few days, and I don't think that is a bad idea. Most of the shorts I saw earlier in the week are now a little extended to the downside to be considered low-risk. Of the longs I mentioned toward the start of last week, some have pulled back nicely, and some had some more volatile pullbacks. The nice pullbacks are listed below if you are so inclined to take some longs here.

My guess is that we continue lower this week. If the bulls are going to do anything to keep this rally alive, I think it has to be right at the beginning of the week, and tomorrow is the last day of the month and quarter, so maybe they have it in them. If they don't, I think there is a very good chance the selling accelerates some starting Tuesday. That's why I think sitting on your hands is smart right now. If buyers come in on Monday, then I wouldn't be opposed to poking at some of the pullbacks listed below, but I just need some confirmation before doing that. Most of my indicators are still pointing bearish, and because of that, I am only playing the short side, and only three stocks at that. Good luck, and be careful!




Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

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The Market Speculator said...

I really enjoy your charts, as your trading style seems similar to mine.

Mac said...

Thank you. I am a modified CANSLIM type trader and for shorts, I use the ideas of William O'Neil as well.

Poston Financial said...

Can't short CMG. Tried to a couple weeks ago and scottrade said their stock is not available to short.

Poston Financial said...

Hey Mac,

I don't think CMG is available short. I tried shorting it when it first cracked $100 but Scottrade said shares are not available to short.

Mac said...

Thanks for the heads up - I didn't try but I have Scottrade too so I guess it wouldn't have mattered if I did try to short it. After today's action, I am glad I didn't.