Thursday, February 24, 2011

Update and watch list for tomorrow...

None of my long recommendations from the past few nights watch list have followed through. However, what I have noticed is that parabolic breakdowns have been working nicely and this continued today. I noticed it with the low float oils with the best example being $PDO. This stock had a morning spike up to $9.00ish, faded on decreasing volume and then cracked in the afternoon and fell perfectly. Here's the chart of $PDO:



I think that if you did not get short these stocks this afternoon and is holding now then its gonna be very tough to get short these stocks. However, they may still present opportunities.

I am gonna start back trading on Monday and as excited as I am to get back into the saddle the fact that I am seeing few set ups that I like and that are following through have me thinking that I will likely be on the sidelines for at least a few days!

I only have one idea for persons who can short stocks below $3.00 and that is $KNKT. This stock has had a number of fake out break downs but when it does crack it will fall hard. So keep an eye on it. Here is the chart (slow gradual riser very similar to $WLOCD and $COUGF):



Besides this there is really nothing else that I like.

Good luck and good trading!

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