Todays potpourri: Falling behind...an AAPL a day...internal bleeding.

Wow, I didnt realize I havnt posted anything in a month. I've been very busy with personal issues but THAT is ridiculous. There have been some great swing trade opportunities recently, especially in the coal space - I will try my best to post more.

Until then, just looking at the last 2 posts from September it seems the SHCOMP is still struggling slightly below the level mentioned last month. On a short term basis is has made some improvements but for the longer term, although improving, it still has some work to do.

As for the Nat Gas call, that was spot on. Nat gas rallied hard (some 20%+ from my mention) and pulled a lot of sector stocks with it as well as helping the coal stocks rally as people think more about the industry switching form more expensive gas to cheaper coal. Can you say "pair trade"?


As an aside, from what I can tell about the recent action AAPL has found some serious institutional selling. Even on days when the broad market is rallying this stock is struggling to hold on. Watch major moving averages as inflection points - the stock recently fell hard after breaking its 50day sma, and similar to the last time it did this, it fell straight to its 100day sma where it is close to now. If institutional money doesnt start flowing back in, look for further price pressure. This is a favorite of mine and many others to trade short term and there are constantly multiple short term swings to play on both the upside and downside.


As the internals of the broad market continue to deteriorate it is important for short term traders to stay thin and nimble. Swing trading opportunities (a few days to a few weeks in duration) are plentiful but use tight stops. When (not if) we get the first big down day - something that may not happen until after the election - that will likely be the sign of THE top and further downside will be highly probable. Until then, light volume selloffs or pullbacks to previous support areas are likely to be bought. A big distribution day on above average volume will be the canary in the coal mine for me. This is no time for the light volume and anemic action to put you to sleep...be aware and read the signs.