Why: After a bearish gap up, resulting in an exhaustion gap, the rally afterwards became unsustainable and unable to make a new high. The current short rally stalls at the 50-day MA.
ANW - Aegean Marine Petroleum Network Inc. (Short), $33.50
Why: In a confirmed downtrend. After stalling at the 200-day in July, and after a failed rally, an entry after a confirmed failure at the 200-day once more is a low-risk entry.
GDP - Goodrich Pete Corp. (Short), $47.86
Why: A classic "bump-and-run" reversal for parabolic patterns. A good short would have been at the first failed rally attempt, however, stalling at below the 50-day MA clearly shows that the stock will move down.
TITN - Titan Machinery Inc. (Short), $22.60
Why: This is a perfect short set up. A break from a high, and after 3 or 4 rally attempts, rides the 50-day MA, or stalls before breaking. Rather than chase the stock on the break, shorting on the pullback provides a much lower-risk entry set-up.
GMXR - GMX Resources Inc. (Short), $59.70
Why: Another "bump-and-run" reversal. Same stalling below the 50-day MA.
IPHS - Innophos Holdings Inc. (Short), $33.33
Why: Largest one-day reversal in the entire chart in addition to a break in support. The inability for the stock to make a new high at this point while declining over 17% shows a high likelihood that the stock will breakdown.
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