Wednesday, October 27, 2010

THE MARKET DARLINGS

 AMZN 5 min 3C-now in a leading negative divergence

 BIDU 3C 5 min also in a leading negative divergence

 NFLX also in a leading negative 5 min divergence.

 PCLN-same thing

The red arrow is the place where I'd feel most comfortable adding a short of any size.

I think if you set stops just above recent highs and use proper position sizing discussed in my article linked at the top about risk management, you can probably get your toes wet here. You may not want a full size position until you see follow through, but that's fine as there's a lot of room below in all of these, jumping the gun too quick is not a good idea, building a position as it moves in your favor is what I prefer.

If anyone wants to discuss specific on any of these, just email me.

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