SOHU

I added SOHU last Thurs.

DRV

Almost got shaken out today, it is breaking out in the end.

Final nail on the coffin?

Looking at the slope of each rally, it gets flatter and shorter. Today's bearish engulfing looks like the final nail on the coffin.

VISN

VISN has performed well since added to the newsletter.

Mainly day trade right now!

I can't ignore the strength, I can't fight the trend, so I covered my NUE, SCHN shorts yesterday. I remain a long term bear, but I respect the current bull trend and daytrade the long side nervously.

Stop is too tight

It was a good pick, but the stop was set too tight. Otherwise, 30% gain!

Short candidates

I have been shorting SCHN since last week, now I am shorting another steel stock: NUE.

Critical time

If the bulls can't push the market higher, a possible double top seems likely.

I am right, this time

I know I have sounded bearish a number of times this year, but I did bravely and timely call a market top on Sep 16th on Twitter, which I feel pretty good about it.

NASDAQ retreating

The NASDAQ quickly approaches the bottom of channel. Can it hold?

Builders

Jim Cramer keeps claiming the housing has bottomed, which I am not sure about it. From the chart above, the housing index shows cracks by first dipping under 30 day moving average that also agrees with my bearish outlook for the rest of the year.

What I learned from 19 consecutive losses

As I am doing some catching up for my lack of posting here, I conclude that I had 19 consecutive losses from end of July to mid Sep. Two of them turned out to be big winners, CIEN and LVS. In order to find out why I had losses after losses, I go to the big picture, the NASDAQ daily chart. You can see from the highlighted dark blue area: it was whipsawing, no clear trend. My method clearly failed in that kind of trading environment.

A bullish case for China

If China market stops bleeding and starts to consolidate at this level, we may form a bullish reversed head&shoulder.

Update: MPG

I am kicking myself not taking proft at $3 area.

Sorry for the absense

Since I changed to Windows 7 this Sunday, Hotspot shield stopped working, which has been a must have tool in China to access some blocked foreign sites, such as Blogspot. Finally with my buddy's help, U95, a Chinese software can also do the trick. So now I am back in the game.

Recent additions

I have been long these two since earlier this week.

MPG

I recommended MPG last night, today it was up 50% at one time.

Ignorance is a bliss

First I have to admit I made a mistake, I tried to pick the turn again. I should not start shorting the market before the trend changes that is 30 week moving average starts to point down. Now once again it is proved that we are still in a monster bull market that has rallied over 54% within 6 months! I have been firmly believing that we are in a long term bear market, because the economy is in a bad shape and this time the root is bad, the Americans have to change their life style. Besides, the technical picture did not support a sustained rally: no double bottom or triple bottom. So from the beginning, in the bottom of my heart I was thinking and projecting the rally is just temporary and doomed to fail some day. I still believe that, but this belief makes this year's trading particularly difficult. I have to trade from the long side while holding a chuck of shorting positions to hedge. And as long as the market keeps rallying, the struggle inside my head gets more intense and at some point my belief is going to shake. Maybe this time is different? Ignorance is a bliss. It is so fit in this situation. If I am a rookie, I could be much happier this year.

Paul Tudor Jones

Paul Tudor Jones is betting against Goldman Sachs. Which side do you pick?

Breaking down!

At the end of day, I got sell signals across the board and I am fully shorted right now.