yahoo shorting opportunity

Potential Shorting Opportunity – Yahoo

yahoo shorting opportunity

Take a look at chart of Yahoo above. Can you see what I see?

Candlestick: Shooting Star
Channel: Closed below the resistance
Stochastic: Overbought
Moving Average: Very far away from the 20/50 day MA

Where do you think Yahoo will be moving next most likely? Up or down? You decide.

Don’t Go Against The Trend

Lesson learned: If the charts tell you that the overall market is down and the short selling potentials are much higher than going long, just focus on shorting. Don’t go against the trend, you are just taking unnecessary risk if you do that.

As seen from the screenshot above, I go long on 2 stocks. I THOUGHT with bullish reversal signals, they will go up. However, I am going against the trend. True enough, the Dow go south again and my stop loss for my 2 long positions were hit. Luckily my losses were covered by my short position in Reynolds American.

Do take note that I am not investing. I am just trading these stocks. So I don’t give a hoot about fundamentals. I just find counters with the right candlesticks signals which can give me a high probable trade – in this case shorting them. I normally hold my positions for a few days only – swing trading.