Pinned Stocks

Crappy weather here all weekend. Never did stop raining. All my fishing gear is ready to go and the Kayak is cleaned and set up as well. Hopefully next weekend I can kick off fishing season.

Pinned Stocks
So things have been beat down for about 6 weeks now. What's next? That is the million dollar question of course, well, slightly less for my account size, LOL.

Right now is actually a good time to look for some long ideas. It is a concept I like to call Pinned Stocks. During a down trend (does not have to be as large as the one we have right now) you can search for stocks that have recently held up well, or have even grabbed a small gain. The key here is to look for heavy buying volume that has come in. If buyers are getting in line to buy shares in company XYZ when things have been tough, they just might go nuts if a broad market bounce occurs. These types of finds are fun because usually you only need play the position for a day or two to capture upside targets.

I am starting homework right now and using the iBankCoin PPT screener it is fairly easy to sort stocks on this type of criteria. I don't know if I will find anything, but I will update later if I do.

Along this line, chessNwine has a few candidates that fit this idea:
Hitting the Pipe Hard
I really like the look of chess pick WES from his chart.

Update:
Ok a rare look into GYSC's mind this Sunday. Here are a few finds chart wise (click any for larger view):

My number one pick, BKH:

Back this chart out to a weekly view and it's even more strong.

Number two, ZGNX, big time bottom here:

Like this one here.

A few assorted ideas:
SNCR:

Looking up.

UVE:

Sellers may be done, and stochastics are looking up.

CNU has a great inverted hammer but want to see some buyers come in:

Interesting.

As always, not investment advice! I do what I do and show you. All of these plays carry risk. There are about a million charting sites better than mine so take a look and see what you think.

Have a good night.

Enough Talk

I wanted to say thanks to The Fly for taking a look at my blog yesterday, along with about 20 others. At first I was sort of pissed at my review, but when I thought about it, it made sense. I do use an old Blogger template, and I do populate the site with pictures of weird stuff. I do blog for fun, I have a day job, and I do enjoy this very much. I am all over the road, I like to discuss plenty of things not directly finance. All in all I was glad he stopped in.

Enough Talk
Well I did not figure to talk about a strategy for weeks and then take a pass!

This morning I opened positions in both SH (S&P Short Fund) and PSQ (Nasdaq Short Fund). The market was about even and I figured a later day sell off might happen so I pulled the trigger. The S&P closed right under my target entry area of 1280. To be fair, I wanted a rally back to 1300 to open these positions, but it never shaped up this week. It still may by weeks end, but I felt like it was time to go on this one.

What is great about this trade is there are clear places to walk away. If the S&P breaks back over 1300 and holds, that would be step one out the door. A close over 1330 is step two (should leave) and if we arrive back at 1360, it's a busted trade without too much damage done. Otherwise it is in play along the new trendline down to the 1180-1190 area I have targeted.

Have a good night.

FED on Hold, Time to Roll

It is going to be 100 degrees here on Thursday, WOW!

How is This Going to Go?
iBankCoin headmaster, The Fly, had an interesting post up last night that I did not see until this morning:
ATTENTION BLOGGERS: I’m Handing Out Traffic
The Fly says to drop a link an he will check your site out. I was at work and I cannot sign onto things there so I was thinking I would be late to get a chance for Fly to drop his smackdown on my humble site. I was in luck, my man chessNwine left a link to this site in the comments! I am a bit nervous to see what happens, I have not been writing too many trading posts (waiting for my moment, details below) so I have no idea what is going to happen. It should be funny as hell no matter what.

Update:
Wowza, at least I got a B-:

Economic Disconnect: Okay, the site design here is atrocious and the author is clearly just blogging for fun. Sifting through the articles, I’m guessing he is young and somewhat interesting. He is definitely too much all over the road. If he wants to take his little bloggy to the next level, he will need to focus on a theme and run hard with it. Otherwise, it will end up in the circular file. Grade B-

Ouch.

In case I get a bunch of views tonight, here is a post a bit more financial centered about calling the top (for nervous traders) in silver and gold:
When to Sell Gold and Silver

Trade Your Plan
Based on market action and my years of FED watching I detailed a plan for the end of QE 2.0 and the recent slowing of all data on the economy. That plan is found in this post, Short Takes, and I have had graphs up showing the targets for the S&P 500.

I figured the FED would sound out loud that they are off QE mode yet still keeping rates at zero. Bernanke made his speech today (I thought it was supposed to be yesterday, sorry about that) and he signaled very clearly the FED is not rolling out anything new at this time. Some thought the FED may open up the idea of more help (in whatever form) but it just does not work that way. They had to do this and I was counting on it to open my short trades.

The only thing missing was that I wanted a bounce in the S&P 500 to the 1300 level, but markets tanked at the close when news spread of the FED speech. What can you do.

Here are the two charts (click for larger view) for the short ideas I am going with. S&P 500 Short Fund SH:


The Nasdaq Short Fund PSQ:


Both SH and PSQ have just broken out of a long term channel. I am looking for a pullback (markets go up) and then will try to enter.

Everything is just too high and too hot for any intervention right now. It is going to take more bad data, not just on housing, and a fearful market to get the FED involved again. This should not be a fast move. Congress will be unable to offer anything and that leaves the FED once again. Long summer ahead. I am allocating two positions to these stocks. This does not mean I am not looking for long ideas, I am, but these two have been an idea I have had for a while. We shall see.

Have a good night.