Wednesday, August 17, 2005

BMHC - a model short candidate


BMHC - a model short candidate. I shorted a small position in BHMC today. If it makes a new low, thereby completing a shift from an uptrend to a downtrend on the daily chart then I will probably add to my position if the volume pattern shows distribution.

One of the most ideal characteristics of this short setup is that a high volume sell-off took the stock under the 50-day SMA, after which it rallied back up to it on light volume and began rolling over before making a higher high.

5 Comments:

At 1:46 PM, Anonymous vivaldi said...

Jon,

I've been watching your list for the past few days, are you aware that out of about 20 stocks in your list, only 4 or 5 are having the down arrow today(8/18/05)? Whatever your system is, keep it up, your predictions/projections seem accurate... too bad I didn't buy all of them... thanks anyway

 
At 10:43 PM, Blogger Gordengekko said...

Jon-

Take a look at a chart on LEND. Looks like a short as it broke the 200 dma on heavy volume today.

Gekko

 
At 11:11 PM, Blogger jontait said...

Glad you like the watch lists Vivaldi

 
At 5:34 PM, Blogger Frank Chiu said...

What's your take on SFE. A lotttt of insider buying pushing the stock up.

 
At 5:53 PM, Blogger jontait said...

SFE looks decent but not good enough for me to buy it yet.

 

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