Sunday, October 16, 2005

Watch list for week of 10-17-05

Why even bother with a watch list of buy candidates when I'm up to my eyeballs in short positions? Because it is my business to keep close tabs on the demand for speculative stocks. The reactions of these stocks this week as they reach their boiling points will give me early clues if the speculative money starts to get frisky. I'm not holding my breathe though.

Another interesting chart that my software spit out at me this weekend is one of my favorites from last year: AIRT. You can see on the weekly chart that it has found support at $10, but if that price level fails, the next support looks like $5 to me. I think the $10 price will fail soon because the trend on the daily charts in both the market and the individual stock is down, but I don't short low-float stocks like this one. This is my spectator sport of choice =D

Based on all the charts I've seen lately and the new 52 week lows outnumbering the new 52 week highs by a wide margin, I'd say the odds are high that this earnings season will turn the markets into a trainwreck. A glance at the weekly nasdaq composite chart shows that if the markets start tumbling, it may yet have a long way to fall. The way I see it, you can either trade chart setups, or use the setups to get you into trends where the money is made during extended periods of overbought or oversold. It is fairly obvious from the notes in this blog that I prefer the latter.


At 2:02 PM, Blogger Gap Trader said...

Nice to see another blog that is a bit negative on the market right now and it taking short positions as a result. May I ask what stocks are you shorting?

At 12:50 AM, Blogger jontait said...


I'm mostly just carrying a large QQQQ short. The other positions are each about 1/10 the size of the QQQQ position.

BBW, DECK, SPTN, HOTT, SBUX are most of my open shorts. Some of them I've been holding for quite a while, and others since just last week.

On Monday I closed out shorts in GOOG and CERN, taking a small loss on each after shorting them late last week.



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