I got a feeling the Bears are going to finally come out of the woods this week. What's the best way to short stocks with higher Volatility?

Do you focus on buying Puts or doing vertical spreads? I can't sell naked calls in my account.

Thanks,
Dr. Tony

I'm expecting a down week as well.

Got into shorts on ATI, ICE, and KLAC

Still holding shorts on C, GGP

Holding longs on ROG, CAM, JEC

Tough week last week. Looking forward to lots of volatility this week!

thanks
strat

Jeff - love the video. That's a turn it up and sing it loud in the car kind of song! I'm gonna go get my ten gallon hat now....

Strat - are you really shorting KLAC? Just wondering why you're going against such a strong long term trend. Respectfully asked, of course.

Kim

Doji Girl and Lori,

Thanks, I have been trying to explain it with "cup and Handle" charting on the indexes. Made no sense at all.

Diana

I forgot LOL
Diana

Jeff,
Love Bon Jovi. It's nice to see you get frustrated with what the market is gonna do, too.

Michelle

Jeff,
ONXX, unless I'm measuring it wrong, it looks like it is projected to move 6.5 points. It is up almost $4 now. Hasn't it made most of its move? What say you?

Michelle

LFC - anyone in this one? Congrats!

kim

DRYS

Lori you have mail.

Dr. Tony,

If you have good directional plays, ones that you think will make larger price moves, continue to buy puts, just be selective with the options you choose.

If you don't expect any large price moves, sell bear call spreads.

Michelle,

At the time of the post, ONXX was up only $2. At anytime you feel a stock has moved too much, apply your discretion.

Keep an eye on BIDU, better late than never...

Jeff-

I've been looking at this one all morning. How are you looking at this one? To break above previous high or as a bounce?

Thanks.

liz

Jeff-
I was looking at this one as a break above previous high....

liz

Jeff,
Yeah, it is too late for me to get in. I think what I was checking with you is if I measured it correctly. If a stock is targeted to move 6.5 and has already moved 4, I won't enter. But if I have measured the cup and handle target incorrectly, then it could change. I have only attended your price patterns class once, so don't have it down yet, and am still planning on buying the price patterns book Brett recommended once August ends and our budget numbers change. Thanks for the input.

Michelle

Kim,,

Yes yes yes...

been in LFC, PTR and ACH for a while now....love China....

Anybody concerned that the $RUT can't seem to break through 800?

Michelle

Michelle,

Yes, your measurement is pretty close, 6-7ish.

Liz, Grant,

BIDU has some nice resistance over head, and China is being bought across the board today. Most China stocks broke out today.

CEDC....sym triangle
DRS....may start to turn back down
EQR...turning dwn
GAP....sym triangle
GMCR .....sym triangle
KRC...turning dwn

looks like alot of things are rallied back up to resistance.....the do or die point...wonder what will happen....

oh one more before this cheap A$$ battery dies in this lap top !!

SII....sym triangle

i am short patience with laptops !!!

Jeff-
Thanks for the feedback!

liz

Thanks, Jeff.
I planning on listening to your class tomorrow (after hours).
I'll get there.

Wish this market would decide one way or the other. I feel like I'm playing dodge ball trying to figure out which way it's going to hit.

Michelle

GMCR has now turned into a symm triangle with a 13 point move - no?

Oh, Tonya already said.... here I was thinking I was sooo smart. Silly blonde girl I am!

GMCR looks like it is ready to perculate...

Still trying to catch up with the posts as this weekend and half of Friday took off with the family. The last weekend before school and first kid in high school...yes, I old now!

Mostly in cash still but looking for trades to get back in the game, thanks Jeff for your posts and watch list.

Oh and I like that GMCR too (perculate!).

GMCR

I see the triangle pattern. But which way? Up or down?

Matt

Matt

On a symm triangle you don't know which way it will go until it confirms (breaks out of the pattern with more than average volume) so long as it confirms, it will move in whichever direction it breaks. I myself, am predicting a move to the upside because of the previous flag pattern - but you don't know for sure until it makes it's move :o)

Has anyone else noticed that volume across the board in the last week or so has been steadily declining and way below average? Is this an indication of more traders sitting on the sidelines and if so, what are the implications? Is this a good/bad sign? How has this affected your trading decisions since many are based on volume?

Thoughts?

Matt

It looks as though GMCR is wound up tighter than Joan Rivers before the Academy Awards. But the spreads?? What about the spreads?

ARTY

TNH sitting at diagonal and horizontal resistance. Target 70, exit on close above 95?
Peter V

Arty.... that was poetic!! Speaking of poems.....where have they gone? I could use a giggle today.

Low volume = scared traders.

The market is waiting....


Arty,

You gotta go with stock on this one. The original reco on this was before it was optionable, and the newly formed options here suck.

Financial seems like they are ready to keel over. Look at GS, LEH etc

DRYS is breaking out with volume. However, I can't determine a target. The average 1 yr bounce above the 30 dma is 5.06, but the current price is already above this. This means that I cannot buy OTM but what about ITM? Any thoughts?

DRYS - Imo, the time to buy that was last week. Too far from REE for my rules.

Judy, for DRYS you can draw a channel from about 50 to 64 and hence have a price target of 14 i-e 78

The stop should be just below the breakout point (or whatever you feel comfortable with)

Thanks for the input on DRYS. I called the hotline after I posted and they suggested using the range that you mentioned, Mahmood, for a target.
As for REE, I use the resistance that the break out went through for my new support and exit, so I am now sitting right on it.

Clean cups

There are a lot of positions bullish and bearish sitting at REE.
Which way to go? Decisions, decisions.

Michelle

Please define "REE". That's a new acronym for me.