Market Talk with Piranha is currently moving to its new home at chrisperruna.com. The new site is up and running but many of the posts need editing as the images and stock charts did not transfer successfully (thanks blogger). I will post all new entries to both blogs – Thank you for your patience while I make this change!

Tuesday, September 12, 2006

A New Short Candidate & Updates

I wrote a post prior to the market open on August 31, 2006 and uploaded four charts of stocks that may be showing a possible short based on a simple bearish divergence technique I have been studying. Three of the four stocks have showed profits with CLB breaking down with the largest profit opportunity.

Based on that blog entry, I have decided to update what has happened over the past couple of weeks and present a new opportunity from my research tonight.



Corrections Corp. of America:
CXW – 66.18,
a 4.38% gain on volume only 36% larger than the average. I see a huge bearish divergence on the charts with a short setup. The entry is the day after the stock closes below the previous high which is $65.

As you can see, each stock did make a gain on the short side but the charts show why a couple of them didn’t set up properly. I would also suggest to use an intraday chart to close the position rather than a daily chart. Please see the original post to understand what I was looking for: Possible Short Setups

The stocks listed on 8/30/06:
PSPT - 16.92 (low 15.45 9/7/06) – 8.69%
CLB - 73.00 (low 67.00 9/11/06) – 8.22%
CTSH - 70.60 (low 68.09 9/11/06) – 3.56%
BMC - 26.97 (low 26.16 9/7/06) – 3.00%









I am new to short term trading (long time CANSLIM trend trader/swing trader) and will continue to use the blog to post up what I am looking at with equities.

Piranha

1 Comments:

At 12:12 PM, Blogger Yaser Anwar said...

Chris,

they did work out well for short term trades. Keep it up

 

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