Saturday, March 1, 2008

After a Decent Corrective Move Up, The Bears Are Back And This Second Leg Down Will Bring In Lots of Opps


upsidetrader said...

welcome back bro

Market Monk said...

Stewie, Some of the best shorts I have had are the ones that have run up fast through zones that I call Thin Air or Clean Air.
Express Scripts is one such candidate. Looking at a weekly chart you can see it ran up to $80 rather fast and therefore can come down even faster. Next likely support is at $54.75 area.
Then there is another Thin Air zone that ESRX can drop through fairly quickly with the support being around $47.25 area.

An example of this can be found on the weekly chart of ESI, it broke support in the $97 area and dropped fast to the $80 area. Found a little bit of support and then dropped again through another Thin Air section finding brief support at the $71 area (hardly shows).

I like these types of setups :-)


Stewie said...

Thanks Upside.

MM> ESRX has been on my short list for a few weeks now but it keeps surprising me how low it has come since i first posted the setup. Amazing. A bunch of oil stocks look to have formed exhaustive type moves with climax type buying candles. If this group starts to fail, then we could see indiscriminate selling again and this time will cause some very nice dramatic moves with high profit potential on the short side.

Anonymous said...

Hi Stewie,

My name is KR and I just started following your blog and I truly like the chart display and the fact you are disciplined and focused as I am trying my very best to over come these emotions... I tried very hard to get out of this ugly market on Tuesday of last week but stayed in and lost my focus and therefore lost a ton of $$$.. Anyway's lesson learned.. Thanks and keep up the good work...


Stewie said...

thanks KR. You need to stay focused and avoid 'deer in headlight' syndrome in this market. What looks bullish one day can turn on a dime and turn very bearish and you need to be ready to switch your stance. There's lots of opps to make a lot of money, don't get tied down with something that isn't working. Trade what you see, not what you want to see. good luck KR.

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