Don't Fight the Trend!

Don't fight the trend:

Attempting to go against the trend will usually get you no where and you will most likely incur loss of time, money and effort.  I have been watching some of these stocks below to initiate short positions but they have yet to break down.  I was lucky enough to close out my short position in JVA today just before it started to squeeze.  I attempted a short position in ONTY when it breached the low of the morning at 9.10 but it only bounced back and I stopped out.  To short stocks like these, you just have to sit on your hands and watch them constantly until they are ready to break down and confirm a change in trend by making a lower low and a lower high.  The reversals in these stocks are so quick and if you are not watching closely, you will miss out on the perfect short.

Still trending higher (for now):

JVA

ONTY

Possible short term reversals in trend:

PCYC

YOKU

 

In the meantime, Lesson to me: don't fight the trend, trade the trend until it stops or wait for the perfect short opportunity to present itself!  Trade what you see, not what you think.

Trade Ideas Tuesday June 28, 2011

Trying to start posting again as I have been busy with the day job...  Here are some possible movers from my scans for Tuesday:

SQNM - Sitting  on some support and could get a bounce as the Bios have been strong recently.  Would need to break above the 50 and 20 again to gather more strength.

KKD - broke out of resistance on recent strength and still holding strong.  Break of yesterday's highs could take this fucker higher.  Volume showing good accumulation recently.

AIG - Possible bottom play although it could just be a bear flag.  Cracked above the 20ma and has a few higher lows.  RSI might be about to cross into positive territory after almost 6 months.  On watch of any signs of life in this turd.

TNAV - Nice accumulation recently and still a strong mover. Has a good .70 in it to its recent highs and could break out above 18.  Worth keeping an eye one.

RENN - China social ding-a-ling networking stock that has taken an anal pounding with a side of shrimp fried rice might be ready for a bounce.  Had a crazy strong 12% day on Monday and closed at the highs on higher than avg volume, not to mention the 25% short float.  Definitely worth keeping on the watch for any bounce towards 8 beans.  This could squeeze hard!

Remember... If the turds don't move... Flush'em!