HighProTrading

HighProTrading

Alaska Air Group displays clear characteristics of a bubble, more precisely of a bubble preparing to burst. On the wings of a 6 year old bull market and more recently fueled by cheap oil prices this stock was propelled from 2.53$ in 2008 to 82.78$. The stock rose more then 30x from the low or as Peter Lynch would say, for those that bought it at those prices it...

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Netflix displays a potential exhaustion gap. The elongated upper shadow of the candle increases the probability that today we have indeed seen an exhaustion gap. If that should be the case I expect at least a 20% correction from here, with the possibility of a 50% correction before it would make sense to close the position. I suggest shorting Netflix. Stop:...

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You can hardly get a simpler and less ambiguous recommendation than that. After a 7 year bear market I think the time may have come for wheat to rise again. You can see a small monthly RSI divergence which has formed over the past 6 months and a larger hidden divergence which has formed over the past 5 years. Commercial buying is at historic levels and the...

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Apple closed lower today on a positive earnings report and has made a bearish engulfing candlestick pattern in the process. There is an RSI divergence present and optimism in general for the stock and its future. This all points to at least a medium term top. I suggest going short with a stop on a daily close above today’s high and with a target of about 20%-30%...

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After a potential exhaustion gap yesterday, prices have recovered which increases the probability that yesterday was indeed an exhaustion gap. The price chart is forming a potential falling wedge and cup and handle failure pattern with an RSI divergence. I suggest taking a trade: Enter with 1/3 position now. Add 1/3 if prices close above 2.62 and add the last...

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If my call that commodities are going to rise again is correct then one next logical investment would be to buy stock in dry bulk shipping companies. I present as a case here DRYS (Dryships Inc) The stock displays a potential completed a-b-c correction to end a 8 year bear market and in general in the dry bulk carriers. The Baltic Dry Index is at a 30 year low...

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Remember the rare earths? Praseodymium, Neodymium, Dysprosium and the like. Remember the story how China produces about 95% of all rare earth materials and these minerals are needed in a vast array of technologies (solar panels, batteries, cell phones, flat screen tv's etc.) and because China has got a monopoly prices are going to go to the moon? What happened?...

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Lately I’ve been hearing the word deflation everywhere, in the financial media, mainstream media, local tv stations and newspapers. It seems that deflation has entered the mainstream and even the proverbial shoe shine boy is talking about it. To me it looks like there’s a trade in there somewhere. To avoid basing a trade solely on anecdotal evidence and my...

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Is the Euro at the same point now gold miners were last November and Copper was in January? The Euro is following a remarkably similar pattern to the one the gold miners had from July until November last year. Will it continue to act in a similar way for the next few...

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Continuation on my post: The Euro continued to go lower and the pattern seems very close to completion. In addition both CNBC and Boomberg ran headline articles earlier today suggesting euro/dollar parity and lower soon. This is a high risk counter-trend trade so respect your stops and use position sizes in accord with sound money management...

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The Euro has completed potentially a 5 wave down structure. We have bearish sentiment and an RSI divergence as confirming factors. Also today's candle is an inverted hammer (www.candlestickforum.com) Technically there is still missing wave (iv) and (v) of one lesser degree but in my experience it is better not to try to be too precise. The last 2 waves may never...

HighProTrading

One quality which the top traders posses is to never be married to a position and to be able to get out or even reverse a position on a days notice. -------------------------------------------------------------------------------------------------------------------------------------------------------------- Join me on my blog: www.highprotrading.com - A diary...

HighProTrading

One quality which the top traders posses is to never be married to a position and to be able to get out or even reverse a position on a days notice.

HighProTrading

10 Reasons to be short the S&P 500 (and the Dow and Nasdaq): 1. Close below 34 EMA 2. Completed Head & Shoulders pattern 3. Close below the December high 4. "Falling off the roof pattern" - The market is said to climb up the ladder, the ladder is then removed and the market falls down much more quickly then it went up. The advance took about 4 1/2 months. The...

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The 2 charts look eerily similar don't they? This is not a prediction, only an interesting observation. In the short term I think the Nasdaq first goes to the 4000 level and then it retests the 2000 high and "pulls a silver". Will it go down from the 5000, 6000 or 10,000 level only time, the price pattern and investor psychology will tell. For the moment I am...

HighProTrading

The 2 charts look eerily similar don't they? This is not a prediction, only an interesting observation. In the short term I think the Nasdaq first goes to the 4000 level and then it retests the 2000 high and "pulls a silver". Will it go down from the 5000, 6000 or 10,000 level only time, the price pattern and investor psychology will tell. For the moment I am...