Stock Online TraderBulls & Bears Make Money, Pigs Get Slaughtered…Let Us Not Be That Pig…

SWHC popped over its 200 dma and kept going up taking the $4.00 support. However the rally fizzled very fast and SWHC pulled back, dropping over 5%, end the day below its 200 dma. Lets see if it can make a second attempt towards breaking the $4.00 and stay above. Otherwise a potential short.

SonicWALL Inc. (SNWL) designs, develops, manufactures, and sells network security, content security, and business continuity solutions for businesses of various sizes. SNWL has started to run up taking over its $4.25 resistance. Its next test will be $4.85, $5.00 and then the very important 200 dma at $5.29. Will be monitoring this one for potential reversal.

Shanda Interactive Entertainment Limited (SNDA) is an interactive entertainment media company and an operator of online games in China. SNDA was a potential double top. After making a second attempt to move towards the all important $34.00 resistance, it failed. Eventually shorts saw this as an opportunity to go short causing it to end the day -2%. SNDA short trade was listed in my previous post.

MYL was another short in my radar yesterday. Once it cracked past the $13.00 support, it never looked back, eventually dropping all the way to $12.43 providing 5% gain on the short side.

STEC, Inc. (STEC) designs, develops, manufactures and markets custom memory solutions based on flash memory and dynamic random access memory (DRAM) technologies. STEC recently broke out of its $5.00 resistance. STEC faces its next resistance at $5.50. Once this is taken out, it could rally alot. However if it cant break past $5.50, i see it dropping all the way back to $4.50 levels. Keep watching.

Hanesbrands Inc. (HBI) is a consumer goods company with a portfolio of apparel brands, including Hanes, Champion, Playtex, Bali, Just My Size, barely there and Wonderbra. HBI popped on earnings news. RSI has recently reversed from oversold levels and looks to be on a rise. Previous trend shows this thing can continue running up for a while as shorts start covering. This is a potential long trade, if $7.00 resistance is taken out tommorow.

Smithfield Foods, Inc. (SFD) is a hog producer, and pork processor. The Company conducts its business through five segments: Pork, International, Hog Production, Other and Corporate, each of which comprises a number of subsidiaries. SFD finally popped up 13% after been sold off for multiple trading days. Similar to HBI, past trend suggests this could keep running up as shorts start covering their profit positions. A potential long trade if $8.00 resistance is taken out tomorrow.

JNJ is approaching its previous bottom of $51.21. This could be a double bottom and time for reversal. Stop loss below the break of $51.00. RSI hit 30, indicating reaching oversold levels. Potential long trade.

Every now and then you have a day when you chicken out on pre-determined plays, just to see it work out perfectly as expected.

CECO was one such play that took a huge dump in the morning. I had listed it yesterday as a potential short play. I was dead right on it. However after dropping back to $22.00 it started rallying today. I was looking to day-trade it on its way up. Once CECO broke $24.00 i knew it would rally more, since a huge resistance was taken out. It actually hovered around $24.00 for a while providing good opportunity to go long and putting a stop loss around $23.90 if it failed. However due to its run-up from $22.00 to $24.00, i chickened out, just to see it continue its up-trend ending at $24.74.

ES spiked up on earnings. Big spike on earnings play is always a safer bet to go long, since shorts start covering and early shorts get squeezed. However i was not interested in going long for day-trade till 1.45pm when ES found strong support at $6.00. After hitting $6.00 twice it spiked well to $6.40 level before turning back to $6.00 again. This third try was a good time to go long putting stop loss on the break of $6.00 around $5.90 level. However i again chickened out thinking third time unlucky, just to see it give some good scalping cents.

MYL was another stock in my short radar. I posted about it yesterday. This one was a good good short on the breakdown of $13.00. Around 2.15pm MYL reversed hitting $13.00. It tried to break its twice, but couldnt. Eventually it cracked down again, dropping all the way to $12.40 level. I chickened out again as per my earlier plan thinking it would break $13.00.

Today was a day of missed opportunities with known resistance/support levels. Today was one such day…sigh***

Lesson learned is to play without emotions, follow the charts and play out pre-determined strategies, with decent stop losses and not to CHICKEN out !!!

ZN crashed 32%. Movements like these is every trader’s dream/nightmare depending on which side of the trade you ended up. ZN reversed too fast to do anything. Add to that there were no shorts available. Sucks…

SWHC is my #1 short. It did break the 200 dma on the upside, but will it hold is the question. On the break of $4.00 this can run up more, so anything above $4.00 should be your stop loss. Volume has been impressive too. Will be watching it closely. RSI in the extreme overbought case.

MYL is a bio-tech company that is on a continous up-trend. It was up last 6 trading days. Volume is slowly dropping indicating less buying interest. Wait for the early longs to exit and it should provide a decent drop. The continous up-trend suggest scalping only. Bio-tech stocks run up on FDA news and don’t really follow the overall market. So you have to be extra careful shorting them.

CECO is an education stock that has seen some nice pop and then drop and now pop again. See how the volume is fading now. It has broken out of its $23.50 resistance, but now it needs a breather. Potential short.

SNDA is pretty close to touching its previous high of $34.01. This could be the double top for SNDA. RSI is approaching overbought levels. It has had 4 up-days now. I will be shorting this anywhere in the $33.50-$33.75 region hoping the double top holds. Stop loss obviously on the break of $34.00

HPQ long worked out perfect as mentiond in previous post. Once it double bottomed it rallied nicely providing almost $2.00 gain. RSI is improving and I expect some more up-trend to sell into.

Other Potential Short Trades are: HTH, CAB and AIPC.

Other Potential Long Trades are: LDK, LNT and ADS.