How Do Most Parabolic Stocks End

Posted by Stock Online Trader on October 15, 2009 in Short Selling, Technical Analysis |

Ever wondered if the stock that was up 20-30% today would keep surging in the following days ? 9 out 10 times those stocks make for an excellent short once the buying interest/volume starts fading. Very few traders want to buy this on dips after its up 50-100% in few days. The momentum is over and the risk/reward goes up on the buy side.

Check out the following 6 stock charts for more evidence. Turns out they actually make good short trades for weeks….

CHIP

HILL

INO

OPXA

RAMS

ZOOMD

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