February 14th 2007
Swing Trade - Short WYNN Entry: 101.00 Stop: 105.20 Target: 98.00
Today the Dow Jones broke into record territory. So why the hell am I looking to short stocks. Well, right now I am playing both sides. The volume on today's move in the Dow Jones was below the index's 30 day volume SMA. I always like to see up days with heavy volume and I use the 30 day simple moving average as my gauge. I suppose I could let today's volume slip, but the overall trend in volume in the index is down.
I guess the market's uptrend and the market's downtrend in volume just gives me pause. I need to go analyze what the lead industries for the past 6 months are up to. For now though, I found another short. WYNN is forming a bear flag after a long run up and reversal. I am going to be watching WYNN carefully if it does setup. The reason being it would be a short in an up trending market, and there is going to be support at its 50 day SMA. So if WYNN does stall at the 50 day SMA, I'm going set my stops to break even and wait for it to consolidate. If it bounces off its 50 day SMA, I'm still going set my stops to break even.
My plan with some of these shorts is that I will already be in a few if the market changes trend. My belief is that the added downward pressure of a down trending market will allow these shorts to hit their targets. I also believed I was going to be a fighter pilot when I grew up, but the optometrist crushed that plan.
I guess the market's uptrend and the market's downtrend in volume just gives me pause. I need to go analyze what the lead industries for the past 6 months are up to. For now though, I found another short. WYNN is forming a bear flag after a long run up and reversal. I am going to be watching WYNN carefully if it does setup. The reason being it would be a short in an up trending market, and there is going to be support at its 50 day SMA. So if WYNN does stall at the 50 day SMA, I'm going set my stops to break even and wait for it to consolidate. If it bounces off its 50 day SMA, I'm still going set my stops to break even.
My plan with some of these shorts is that I will already be in a few if the market changes trend. My belief is that the added downward pressure of a down trending market will allow these shorts to hit their targets. I also believed I was going to be a fighter pilot when I grew up, but the optometrist crushed that plan.
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