Wednesday, November 4, 2009

FUQI Short Setup


seen many similar patterns like these in my past, FUQI is gonna get ripped to pieces sooner rather later.

12 comments:

Anonymous said...

Not sure why it is a bearish sign. Similar signs were there at every short break when it was climbing up to $30.

How about earnings? Do you think they will miss? what will happen if they beat expectation by 5 pennies?

Stewie said...

i cannot predict what a stock will do when they announce earnings. Stocks move based on supply and demand for the stock and right now, supply is coming in until there is a catalyst that changes that of course....it could be earnings or a warren buffet buy out!! lol. anything can happen. it's looks like a short here stop at 23. if it breaks 23 on the upside, then cover the short and move on to the next trade.

Tyler said...

Anon,

When FUQI was rising it was making higher highs and higher lows. Each pause on the way to $30 was a consolidation of gains through price and time prior to trend continuation.

Notice the difference between then and the recent price action. Price has rounded out and is now making lower highs and lower lows. So, we can say that this consolidation before continuation of trend (down).

Good trading,
Tyler

Anonymous said...

Got it. Thank you for the clarification.

Shawn said...

Steve, what's your take on general market? Still undecided?

Thanks
Sean

Laurencija said...

FUQI touched 23.00. Does this mean that pattern is no longer valid?

Stewie said...

I personally never took the short due the market's rally. I only place trades in direction of the general market. If we start to roll over again, i will at FUQI as a short again but as of now, i would wanna be short FUQI.

Stewie said...

Shawn,

This week was a choppy grind higher. This is not bullish in my book. Once we ease away from this choppy grind, chances are very good, the bears will be back. maybe as early as next week.

Anonymous said...

I think a 10,000 support is being formed. Bear sentiment is a wish, I think, not a fact. Otherwise the countless bear raids in the last two weeks would have easily brought the index on its' knees at around 8500. After all gloom and doom we are still at 10,000. The trend is telling me we are looking at 10,500 soon and 11,000 not long after. Jobless rate of 10% sucks but it's healthy for the economy.
Short anything but FUQI. FUQI is the last thing I would short now. I has shown an enormous strength by running up to 23.45 from $20.00 in 2 days, barely hesitating. With almost 30% of float on the wrong side of the trade (namely shorts), a good earning release on Monday has the potential to carry FUQI back to $30+, which is still cheap all else being constant. The only way this won't happen is a miss of earnings, which is very unlikely.

Charts can tell you only so much.

I wish you all good luck.

Stewie said...

AWESOME observations last anonymous person!! I can see your scenario and this is why i ALWAYS advocate having an open mind and ALWAYS being nimble. Anyone who knows me knows that i change my mind quickly and always ready to get on the RIGHT side. I really have no say in the matters, i will always be adjusting to get on the market's side. I am not short FUQI and never shorted it, i was waiting for A: the market to break down further which did not happen and B: i was waiting for FUQI to show me signs of weakness which did not happen neither.

And your analysis on the DOW 10K i think is spot on and i think a retest of teh highs is in the works now. \\good luck.

Market Monk said...

Was going to post early last week that FUQI's earnings announcement is scheduled for the 12th before market open per Finviz
http://www.finviz.com/quote.ashx?t=fuqi&ty=c&ta=1&p=d

But Anon may be correct and it could be Monday. Finviz is not always correct.

Either way one needs to look at a # of items before putting on a trade - earnings date is a key one.

Trade well,
MM

Stewie said...

I have a golden rule and that is to NEVER hold any stock long or short thru earnings. Even 2-3 days before earnings makes me nervous because there is always someone who knows something and will trade accordingly.
perfect example: check out how RIMM traded the day before they announced their most recent earnings!!!

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