Monday, May 17, 2010

Three Stocks in Stage 3 Breaking Down!!!

These three stocks are currently breaking down from stage three topping patterns. All three recently announced earnings disappointments after stage 2 run ups off the March 2009 market bottom.
However, my best short idea is RINO. In addition to the recent earnings torpedo, RINO ran up more than the other two stocks advancing over 1100%. The catalyst behind RINO's decline appears to be more powerful. Unlike the USA which still has interest rates at record lows, China is currently pursuing contractionary policies and alot of other Chinese stocks like RINO are currently breaking down from stage 3 topping patterns.
So I believe that RINO offers the best opportunity on the short side during the current correction.
Good luck and good trading!

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