Not so FAST!

 It has been a while since I posted individual chart names. I found some good ones to post today. This should kick off the week for you. I have no idea of the fundamentals of these companies, that is your homework before trading/ investing in them. I will take a look at the sector, analyst estimates, 1 year EPS performance, trading volume before trading. I cannot guarantee I will trade all these charts, these are eye candies. If things line up well, I may trade them. I will definitely post it on Stock fund blog. 

I start with Fastenal Inc. today. Use the trendline on FAST to buy the dip with a 5% stop.

Next is symantec. SYMC has possibly double bottomed, buy it right here with a stop below the lateral trendline. Go short below it.

Below is the HOLX daily chart. Enter the position on a breakout, up or down.

Adobe recently satisfied Steve Jobs' ghost by killing mobile flash. Check ADBE chart. ADBE has been trending up after a good consolidation. Buy on a dip with a 5% stop.

We return to our good old friend, AMZN. AMZN is at the lower trendline of the megaphone pattern. I have a bad view of the fundamentals this company has. Yeah, traffic is growing and the site provides good stuff to buy. So, what? It earns 10 cents. With cash in balance and everything, if Wall Street used good criteria for buying stocks, then this should be below 50$. 

 Sell short on a trendline break but notice long term trendline support. If it breaks below that support, it should go down faster than NFLX.

Mattel Co. has been on the uptrend. With this being the holiday season, I am bullish on the name. The chart supports the theory as well. Buy 1/2 now, and buy on a trendline touch. Sell 3% below the trendline.

Sell BMC with a stop above the channel breakout. Buy if it breaks out of the channel.

BroadCom is bearish for some reason. To be honest, the tech sector is not leading this market. That is definitely not a good sign for the market. 

Sell BRCM below the lateral trendline with a 5% stop. I see a H & S on the chart, do you? If the H & S is real, then we should see BRCM test the 2009 lows.

I am bullish on CSCO. CSCO has double bottomed over the long term. Buy with a 5% stop but if it breaks below the double bottom, sell short.

I am bullish on ESRX but buy the breakout. Wait, have patience!

Here comes KLAC with a beautiful chart. Buy with a 7% stop.

I like NVDA here. Buy with a 7% stop. 

I will visit these names after 4 weeks and we will assess our performance of this basket.

Market update

Folks, 1st things 1st. It is easy to get distracted during trading/ investing. Trading and investing need 100% of you in a perfect state of mind. If you are not in tune with  the market, then your trade is a lost cause. Today morning I read a signal on my charts, I placed a short sell TNA but that didn' execute well. My VST trades are more often terminal trades, sometimes they get extended for many days though. I get in to the trade with a small expectation because of the terminal nature of the trade. When I did not get enough TNA and market was going down within 10 minutes, I felt very bad. When you want to short sell, remember you are fighting everyone else. The odds are stacked against the short sellers. Buyers don't have many rules. Short sellers can't get enough trades, then your short trades may be called..the list goes on. TDAmeritrade is turning short selling into nuisance. During peak hours, exactly when I want to place a trade and hit short sell order button, the order says "WAIT REV.." What review guys? If the short sale is not available, let them make the system to outright reject the trade. I will move on to the next thing to find within few seconds. If the order is waiting for 3 minutes to be approved, what does it mean? It means the guy on the other side can reject my order for 1001 reasons, not just because there are no available shares. It is more frustrating if you have a partial fill. I had to short sell today at a lower price again today but see not everytime you get an opportunity to fill at lower price and still win. It kind of set me off today morning but overall it was a good day. The brokerages, investment managers, nobody encourages short selling. They set weird rules to offset you from short selling. So, be ready to take such risks when you want to sell short.

I analyzed my charts and it looks like there is unfinished business on the downside. I suggest my swing traders to stay in cash. The next signal you are going to get from me is a buy, I don't know at what level. But, you stay in cash. period. Because the market gapped up multiple times and stopped you out. Fine with my system, you will get your chance. Please wait in Q.

The market is sick and 1 chart straightaway shows it. The NYA50R declined today by 22.5%. Translates to 22.5% of the NYSE stocks fell below their 50 day moving average. May be the ticker changes on individual names may be small but I told you during the weekend that market managers tend to buy stocks which are above 50 DMA, 100 DMA, 200 DMA etc. The fact that even after multiple days of rally, the market could not take all these stocks so much higher above 50 DMA to be able to be above 50 DMA on a day like this (2% sell off) speaks volumes about the vulnerability of internal structure of this market.

Look at the NYA200R. It is at 29.32. So, with a rally of several days, all the market is able to do is to keep only 29% of the stocks above 200 DMA. Yeah? That is pathetic and sick.

If today finished close to even, I was going to write we were close to a buy signal. But, not anymore. All I can say for swingers is to stay in cash. That is only because I am following my system. I have to adhere to the rules of my swing system. Buy signal comes after sell signal and so on. If I followed several untested (by me) systems, I would ask you to sell short with good stop. That is where the market is.

Is Santa Claus coming to the stock market?

The chart is self explanatory. There are several ways to define a bear market. Classic text book definition uses the term bear market as market below 20% of the peak. In my opinion, we can use meter checks like how many stocks are above 50 DMA, 150 DMA, 200 DMA etc. I am using the NYSE stocks above 150 DMA as a barometer here. What happened to this index is not good for the market in the long term. Long term model following this index chart above stays in cash even though the  big picture still tells us that we are in a bull market. So, is Santa coming to the stock markets? I doubt it but with a gun to my head, I have no idea. There are mixed signals. I am taking a day, but if compelled a week at a time.

Sweet candy!

"What would compel me to short it here is if we see a lower high on the RSI (14) against a higher high on the price."

The above is from my previous post.  I got the lower high today morning on ES hourly with RSI14, that is sweet candy to me. I am entering a VST trade based on this.