Stocks for the Rest of Us
Focus Trades
Individual Stock Picks and Setups
Freeport McMoran FCX = SELL!!
Jul 27th
This is what a SELL looks like. FCX is setting up for a classic double top here and considering the run it’s had in the past few days you’d be crazy not to sell this. MACD is starting to wane and the overall market is looking a little bit tired. We’re running into resistance here and there’s no support until about 52 when the 50 day moving average comes into play. Furthermore, volume is starting to wane as well indicating a lack of sponsorship up and these levels. SELL!!
AIPC: I Love Pasta But I Love Money More
Jan 16th
I’ve closed out my AIPC position for now. As much as it pains me to do so you just have to be insane not to sell after a 20% move in this market. I’ll revisit this stock again on a pullback.
NYX: God I Hate This Stock
Jan 16th
I hate this stock but it’s worth taking a shot here as the risk is perfectly defined. The chart should be self-explanatory. The stock sold off hard today and filled the gap from early December in what looked to be some kind of capitulation before reversing and trading up after hours. I think you can get long right here and stop yourself out below 20.
AIPC update: Consider Taking Some Profits
Jan 16th
I think it might be time to start taking some profits in the AIPC trade I talked about the other day. We’re up nearly 20% and in this market you have to take what you can get.
AIPC: Everyone Loves Pasta
Jan 8th
This is a purely technical trade (although I do love pasta). The setup is easy. The stock opened up on the lows today and bounced. I want to stop myself out below today’s low. The big volume on the up days shows accumulation and the low volume sell offs reflect simple profit taking after a big move. Another way to play this stock would be to establish a partial position here and wait for a pullback to 17 where previous resistance was. You can stop yourself out of that small position below the gap and add to it on the bounce off of 17.
AIPC
Pairs Trading: Why Running A Balanced Book Can Be Beneficial
Dec 5th
I didn’t realize it at the time but I was actually initiating a pairs trade when I recommended going long UNG and short XTO. A pairs trade is simply going long something and short something against it as a hedge. I really was bullish on Nat Gas and the move below $5 is amazing, however, by shorting XTO we’ve hedged our long position in the UNG and the losses we sustained in the UNG trade were more then made up for with the XTO trade. I always employ stop losses so I’m no longer long UNG and I continue to be short XTO. As Dennis Gartman always says “Do more of what’s working and less of what isn’t”. Pairs trading allows you to do just that.
Short PCU
Dec 4th
Copper prices seem to be hitting new lows while the equities are still hanging in there. I’m shorting PCU at $12.44. It appears to be up towards resistance at the upper range of it’s down trend. You can keep a stop just above the 50 day moving average.
Short PCU
UMPQ Trade Update; Take Profits
Dec 3rd
Pigs get slaughtered. If you took the long side trade in UMPQ that I mentioned a few days ago I would consider taking profits here. 10% in a few days is nothing to sneeze at and in this environment you should take what you can get. It may go higher but being greedy will only lose you money in the long run. Take Profits!!!
How To Buy Gold; GLD
Dec 2nd
Gold is a controversial commodity because it’s not really a real commodity. I mean, who consumes gold? Either way, gold does serve a purpose and that is to protect your portfolio against inflation. With all this money being pumped into the economy I have to believe that eventually we’re going to get some inflation and in that case you’ll want to buy some gold. The easiest way to put some gold in your portfolio is with the GLD exchange traded fund. You can purchase it just like you would any other stock.
Having said that, I’m not sure that now is the time to be buying it. After the run we had last year gold has been in a downtrend and until that trend breaks I would just sit back and watch. Keep an eye on More >
Short The Euro; It’s Going Lower; FXE
Dec 1st
This thing is going lower, if it breaks 125 short it. The more times something bounces of support the less likely it is to hold.
FXE Short