Friday, October 3, 2008


I will short or consider shorting the following stocks today:

BZH looks like a good short because of the flag forming after the 50-day MA failure. The stock also broke its uptrend entirely. I expect the stock to retest the $3.50 level.

APP formed a really great pattern here. The stock is testing the 50-day again and it doesn't look like it will hold. Also notice the break in the uptrend. The stock finds support at $7.

NPSP was a stock that formed a new high, however, the stock formed a breakaway gap. This stock is toast and is a definite short for me.

Please read the important disclosures at the bottom of the page prior to considering any investment decision.

Don't forget to try out the Free Trend Analysis. It's FREE, so give it a shot!


Anonymous said...

Should we go long tomorrow if they pass the bailout bill?

John C. Lee said...

I'm just going to trade in the direction of the reaction. Who knows what the market's response will be. Take cautionary measures tomorrow.

Anonymous said...

With wells fargo and wacovia deal thing seems positive today if the bill pass perhaps we can go long financial for a day trade?

Anonymous said...

Hey John-

All the Ag stocks that you recommended shorting yesterday such as pot mos agu... due to MOS earnings, however at the same day MON actually raised its outlook, would the selling of MON stock based on fear? any chance that MON will fill the gap today and this could be a buying opportunity?

John C. Lee said...

probably, with caution.

Is everyone watching the House debating (again)?

As for MON, it seems to be doing the best. That's an extremely large gap. $87-$88 is the support level here.

Anonymous said...

so did the bill pass?

John C. Lee said...

great, so we all learned something here. This is very important here.

If the day breaks down further, I'm in 100% short.

John C. Lee said...

it did, by a wide margin, but the market sold off considerably.

This is what I mean by "cautious" because no one has ever been in this trading situation before.

John C. Lee said...

sweet! join me for the ride down!

John C. Lee said...

so, NEVER go long, just because something 'great' is going to get passed. You never know the market reaction.

We'll all use this valuable information for future trading decisions in the future.

I'm the meantime, short the S*** out of this!

Anonymous said...

dammit you are right again I couldn't keep track sold all my position when thee Dow drop from 300+ to 200+ should have short instead of sold

John C. Lee said...

Always trade the direction of the market's reaction.

If you miss it, then you miss it, no big deal. If you're wrong, then your f-ed.

This is why I said take cautionary measures and never said "GO LONG!"