The Rogue Investor » short

ETF Breakouts: SSG & TWM

Alex — Thu, 29 Oct 2009 03:06:29 +0000

I’ve got two good looking breakouts today. They are both ultrashort ETFs with one tracking the semiconductor sector and the other relating to the Russel 2000 index.

Here is the chart for the second ETF:

I really like the look of both of these charts. We have great looking volume that is increasing as the ETF moves higher, a strong move above the 50MA (which hasn’t been crossed in a good long time), and IBD declaring the markets as “in correction” so you can expect the move to continue.

Both of these are at great buy points for me and I’d expect to see them finish the week strongly.

If you aren’t interested in the volatility that comes with the 2x ultrashorts, you can find the 1x shorts version of TWM in RWM.

You also might enjoy:

Chart Analysis: Short on Boeing (BA)

Alex — Fri, 24 Jul 2009 03:03:00 +0000

Click to Enlarge

I opened a short position on Boeing (BA) after the stock failed to close above resistance around $42 on increasing volume. There is a nice head and shoulders pattern forming. Post any questions you have on this move!

You also might enjoy:

Stock Alert: Short on PALM

Alex — Wed, 17 Jun 2009 13:33:08 +0000

Click to Enlarge

Here is some VSA on PALM that shows selling into the up-trend on multiple occasions. Comment with any questions.

You also might enjoy:

Stock Alert: Short on RRGB

Alex — Thu, 11 Jun 2009 22:39:21 +0000

Click to Enlarge

Red Robin (RRGB) has formed a great looking IBD quality short chart. We have the failure to make new highs, the weakness that showed up today, and the 8.4% between us and the next line of support that are all at play here.

The only thing I would change about this chart is I would have liked to see a little more volume so show an increase in the selling, but you can’t always get what you want.

This coupled with the weakness that showed up in the market today make for a great short. Good luck!

You also might enjoy:

Stock Alert: Short on DD

Alex — Tue, 09 Jun 2009 00:50:27 +0000

Click to Enlarge

Shout-out to @LWinthorpe for bringing this stock to my attention.

$DD is a beautiful example of a breakdown in a stock that has been trading sideways for the last 2 months. I have drawn on the chart above the optimal path this stock could take for us to get a nice short out of it.

All we are looking for is $DD to fall below the support line on decent volume (so that it isn’t a false breakout) and then retrace its steps back up to the bottom of the support line. As $DD moves back towards the support line, we want volume to fall off, and then when it gets close, we want to see a high volume down day to confirm the weakness. That high volume down day is our signal to open a short position.