Vulcans who short for fun

[Lyehopper]

here's a daily chart

AMZN short daily....

http://img259.imageshack.us/img259/4706/amzndaily804aw.png

[Lyehopper]

How about PARL?... I'm one chart postin FREAK!

PARL daily....

http://img400.imageshack.us/img400/5808/parlshort92605daily0ws.png

PARL Weekly....

http://img207.imageshack.us/img207/221/parlshort92605weekly9rj.png

Actually I kinda like PARL but I think it's gonna retrace a few more points before another move up. HUGE short interest in PARL too.

[ForeverInvesting]

How about KBH?

KBH looks like a decent short. See the chart below.

[skiracer]

And after Greenspans comments of late the homebuilders are in the toilet. But they have been due for a big correction after the runnups they have had over the last two years. Not so much their fault as the whole ecomony is beginning to falter. Would have been nice if you had gotten in on the action today. BTW that's not the best example of a head and shoulders pattern but any port in a storm if it works out for you. If I had my druthers I wouldn't be buying the homebuilding sector right now so shorting it would be my choice if I were going to make a play in that sector. Keep a close stop.

[ForeverInvesting]

And after Greenspans comments of late the homebuilders are in the toilet. But they have been due for a big correction after the runnups they have had over the last two years. Not so much their fault as the whole ecomony is beginning to falter. Would have been nice if you had gotten in on the action today. BTW that's not the best example of a head and shoulders pattern but any port in a storm if it works out for you. If I had my druthers I wouldn't be buying the homebuilding sector right now so shorting it would be my choice if I were going to make a play in that sector. Keep a close stop.

Skiracer,

I agree it is not the best Head & Shoulders top. The triangle looks like a better pattern. A stop at $76.50 is advisable.

Mike

[New-born baby]

Hov

I went short HOV by selling the calls. I posted on Hot Pick of the Day that I went short the OCT $50 calls at $5.30. I covered them all today because the chart says that something of a bottom has been reached. It may be only a temporary bottom--I don't know. I suspect that HOV dumps much more, but that dump is going to require the market to tank--something I look for.
In any case, KBH and TOL and HOV all move in lock step, so you might be looking to short into strength here in a day or two.

Here's the HOV chart:

[New-born baby]

KBH: danger

Shorting KBH might be dangerous right now. Here's why: that chart warns that KBH could turn on you with a knife. The stock is not dead. It is alive and dangerous.

The issue will be $70 resistance line. If it breaks that, I'd sell every share I could find right then and there. But I think that tomorrow, Wednesday, we might very well see a bounce out of KBH. If so, a complex inverted head and shoulders pattern has formed. Any break of the neck is bullish. In fact, a double bottom has already formed. It is bullish.

Take a look and see what I mean:

[Lyehopper]

feedback please...

So are ANY of my TA (attempts) valid or should I just stick to FA?

[spikefader]

Hey Lye, just saw your charts. Good job! Pretty stuff

I'd be more inclined to use an oscillilating indicator like TRIX to attempt to time the buy into FIB retracement at the support area, rather than the short down into support. Why? Well, the move up to give you the FIBS is the trend drive, and the FIB is the retracement support area. You want to go with the longer-term trend, and buy into weakness at support to give you an edge with 'trend is friend' and 'buy weakness' that we often hear. Now I know - that's assuming it IS a trend in the first place, and that the FIB supports are going to HOLD, but that's the angle I'd look at it for what it's worth.

On your divergence lines in detrending price oscillator, only thing I'd add is to look for specific divergences and not the overall trend of the divergence. Why? By locating specific ones, you can trade off the oscillator's trend lines. Here's an example:



Keep posting; it's all good. And nice first effort dude!

[spikefader]

LOL NBB. That ain't no inverted SHS with KBH! lol Looks more like an inverted Hunchback of Notre Dame! LOL

My humble advice to you tonight; be more picky with patterns. Don't try to make a square peg fit into a round hole!

[New-born baby]

Double bottom?

LOL NBB. That ain't no inverted SHS with KBH! lol Looks more like an inverted Hunchback of Notre Dame! LOL

My humble advice to you tonight; be more picky with patterns. Don't try to make a square peg fit into a round hole!

Thank you, Spike. Very much appreciate the comments. My question:no double bottom, either? (At $70). Of course, a double bottom can fail, too.

[Lyehopper]

Thanks Spike!

I actually understood that critique! You're a good teacher Mr. Spikefader.

I think I just discovered a sector that's about (to begin) to slide. After more dd I'll post one that I'm really shorting.

[spikefader]

Thank you, Spike. Very much appreciate the comments. My question:no double bottom, either? (At $70). Of course, a double bottom can fail, too.

Sure. Yep, you read that spot on dude Absolutely a double bottom at 70.40ish and another intraday one yesterday. Unfortunately, it was until it wasn't LOL I was actually hopeful for KBH up until today's action.

[ForeverInvesting]

Thank you, Spike. Very much appreciate the comments. My question:no double bottom, either? (At $70). Of course, a double bottom can fail, too.

KBH made a lower low today than last week's low of $70.45. If KBH closes lower than $69.12 which is the weekly low of August 29, then I think KBH will go lower. On the Point & Figure chart, there is a new double bottom breakdown. The price objective is $65. If the price closes below $69, then that would be a triple bottom breakdown which is even more bearish than the double bottom breakdown. Two breakdowns so close together is not good for the bulls.

Mike

[jiesen]

They ought to fall much further. Their bookkeeping has been Enron-like.
Nice chart. Nice call.

So, did anyone else buy the $40 puts like I did? Holy cow, they nearly tripled today! FNM down $3.4 right now on this breaking "rumor" off the DJ newswire:

-----------------------------------
Of DOW JONES NEWSWIRES


WASHINGTON (Dow Jones)--Investigators combing through Fannie Mae's (FNM) finances have found new and pervasive accounting violations showing executives embellished the company's earnings over the years by overvaluing its assets, underreporting credit losses and misusing tax credits - on top of what's already been disclosed, according to people close to, or who have been involved in, the inquiries.

Several of these people examining Fannie's books also said evidence indicates the company purchased so-called finite insurance policies to hide earnings losses after they were incurred. Securities regulators, including New York State Attorney General Eliot Spitzer, are cracking down on corporations they say bolstered earnings by using abusive financial reinsurance policies that are more akin to loans where little or no risk is transferred to the insurer.
---------------------------
How low can this one go?