"Bear" With Me

Hey Gang:

Sorry I missed the meeting Monday, hope those who attended had a great time and shared some good ideas.

I'm feeling down (as in the Market) so "Bear" with me. I mentioned in my previous post that I felt the Market was going south. I still belive that, especially with oil prices soaring, gas prices soaring, the housing market is getting really bad, the Fed still has some inflation worries, etc. I have started entering Bearish positions in my portfolio (NOT a recommendation). I have been buying Bearish ETF's, the DOG (Dow) and the QID (NASDAQ). Here are the charts:

DOG
QIDYou can see on both charts I have my pre-set target prices where I either exit, or move my stop-loss price tighter. Technically, these were good entry days as the MACD and STO were favorable for a rise, and the "bounce" off the diagonal support seemed to give me my "go" signal. I also like this trade now because "Sell In May and Go Away" is just around the corner. If you look back on last year's chart, you'll see what happened then. That is NOT to say it will happen again, but it seems to be the pre-summer trend when the trading moguls retire to the Hamptons for the summer and let the junior traders take over. Hopefully this trend will continue.

A caveat about DOG, it isn't as heavily traded as DXD (which is probably a better ETF since it is more "liquid"), so you may want to look into DXD instead.

Chris Harding I was told is in a particluar trade I follow (and have done well with) - PCAR. Here is the chart:Again, one of those Channeling, Bouncing trades (notice I didn't say "stock") I love. Clear, defined Entry and Covered Call signals on an uptrending stock. I am out of this position now, though I have highlighted my anticipated entry area.

Some other "favorites" are: BHP, BUCY, CCJ, DVN, FCX, GRMN, PICO, TIE, to name a few.

Happy Trading!