Trades

Here are some short trades that look decent, I'll keep adding them as they pop up. I also included a list at the bottom of inverse ETFs, I personally like a mixture. The ETFs can give you great leverage. Keep in mind that it looks like this may be a one day bounce and a false breakout, it could extend longer, but with the TRIN at .55, it suggests a close lower tomorrow as of now. Understand that a close back into the bear flags I posted the other day, will be the JUDO concept and the malicious bounce we've been looking for. The breakout above and fall back into the bear flag is itself the trap. So when considering stops, keep all of this in mind as right now we have finally seen what we've been looking for. 

GIB with a wide stop at $14.41 or a tighter stop can be used at $14.27. I like it here at market. It responded poorly today, there's 3C negative divergences everywhere, especially the crucial 1 day chart. A break under the 8/25 low around $13.50 should seal this one's doom.

ABC may make a run higher before the day's over. The main resistance is around the 8/23 top of the gap around $28.52. If the market were to try to move up further, that would be the level they'd try to break above for a false breakout. I don't really think it will get their but you must consider it for position sizing of risk. There's a lot of overhead volume around that zone as well and you can see it failed to break through today. An alternative entry would be to go short below $27.20 and place a stop at $27.77 at that point it should experience a swell of short sellers and a severe imbalance with little demand.

GIL is a failed double top with support around $26.60. It acted very badly today considering the market, that's a bearish sign. I don't see a high probability of this making any significant gains whatsoever, the negative divergences are leading in some of the most important timeframes. An Entry at $27.40 would be nice, but for $.20, does it really matter? The one day 3C negative leading divergences are really bad. The Trend Channel has a stop around $28.70, personally I wouldn't be too worried about taking this right here.

TSCO gained today, that puts it in good position. There's gap resistance at 70.88, a stop a little above that would be my choice or $71.81 if you really want to give the initial entry some room to work in case there's volatility in the next few days. This is a trending position that will see some counter trend bounces I think but I think the trend channel could handle those. The beauty is once it breaks $59, the sailing will be a lot smoother and eventually this could easily be cut in half.

Inverse ETFs (buy these long like a stock and the underlying issue they cover will cause these to gain as it falls. they are also leveraged so keep that in mind with risk management. The worst thing is setting a stop too tight and seeing the trade work right after you get stopped out. According to the risk management plan I linked for you, we can have a wider stop by taking fewer shares. We can always add to the position and I usually do add to winning positions-NEVER losing positions. These also can not be called away from you as we have seen with some Scottrade short trades-that really stinks too to have a trade working only to have it covered by your broker.

FAZ, EDZ, SRS, EEV, FXP, ERY,SSG, SMN, SPXU, SRTY, SQQQ, SDOW, TZA, MWN, BGZ,  DRV, SOXS

I want to get these out to you now, but I'll be adding more.

Below you can see a 5 min 3C chart, today's move up has a distinct negative divergence. All the averages look almost identical. Whether we get another day up, which I doubt, they seem to be clearly selling this breakout.