TZA short, POT long

Simple bear flag formation. Short on the break of 3rd candle low.




I Like red, green, red bar for a short when the low is taken out but instead if it takes out the high, worth going long. TZA had the same pattern on 12/13. Pot had the same pattern on daily but today price took out high instead of taking out the long. I entered long just below PDH.

12/19/11 Trade - Short SPY

I was a little bullish yesterday and when SPY gapped up and retraced to 5 EMA right after the open, I was ready to go long on any sign of strength. SPY formed a bearish inside bar and instead of taking out the low, took out the high. I was waiting for the 5th candle to close above 50 EMA on 15 min. chart. Price then took out the morning low in the 6th bar. Instead of going long, I went short, took 3/4 out at S1 and held the rest for some more downside. Price consolidated and then moved above 50 EMA on 5 min. where I had placed my stop loss. It was a head fake. I covered the remaining just above 50 EMA on 5 min. chart.

BIDU, USO short

BIDU formed a beautiful bear flag. It was on my watchlist because of the daily. It was rejected near the 150 levels on Tuesday, followed by some consolidation on Wednesday. I was looking for some continued down movement today. First 2 bars nice red, followed by small retracement to meet the sloping 5 EMA. Formed a bearish candle. Entered short there. Nice ride down from there.


USO was my resistance setup.

SPY Short

SPY tried to consolidate below 9/16 high and 50 EMA but was unable to break. It broke down in the afternoon. Short opp. when there was a WRB followed by red NRB. Entered short on the break of WRB low. This produced good results esp. when market is over extended and with overhead resistance to overcome.

Short Gold

GLD continued to sell today. It formed a doji on the PDL. Shorted when price took out the low of the 1/15 candle. Took partial at S1 and the covered the remaining at S2.

SLV Short

SLV short setup is what I call 'intraday resistance' short setup. The setup was not ideal as 50 EMA was under the entry on the 15 min chart. Price gapped down, tries to rally, meets the EMA as resistance. Short when price forms a lower high. Entered short, took partial at S2 and the remaining just above $41.


I did not take the gold short. I was watching both gold and silver short. Gold was also a resistance short but formed a higher high before breaking down. This usually produces the same result, maybe a little better.

SPY

Today is a perfect example that the markets can go down an unbelievable -4.7% even when the indicators say that we are highly oversold. Just follow that charts and have a stop loss.