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Weakness

PM tight pattern gives calculated entry After V-shape move off the bottom on February, stock formed double top at $91.62 and sold off from there with two gap downs (means strength of sellers). I will us gap pivot point as stop/ Until it stays below $87, I am bearish. Price is below key moving averages. You can manage this trade in different ways I use active trade management. Enter with tier1 in this tight pattern, add tier2 and tier3 if it breaks down and close below $83.83. My road map is move to $79.
NYSE:PMShort
by andrew.berg
BA showing weakness after earningsThe Boeing Company (BA) delivered upbeat second quarter 2014 results backed by robust deliveries. The company reported adjusted second quarter 2014 earnings of $2.42 per share, beating by 19.8%. The quarterly number rose an impressive 44.9% from $1.67 per share a year ago. Candle is in red on good earnings telling us about weakness. And the chart confirms this argument. It put series of lower highs $144.57 ---> $138.39 while market is making new highs. And now it is building lower-level base in front of 200 EMA with wll defined risk above resistance at $130. You can consider early entry in this narrow range to make you Risk/reward better but for higher probability I prefer to wait for break down and close below 200 EMA at $125.60 as it wasn't broken since November 2012.
NYSE:BAShort
by andrew.berg
ESRX forming favorite patternsThis healthcare company forming best opportunities and shlwing relative weakness on weekly and daily charts. Recent top was at $72, then it broke down and now if flagging near moving averages. I will be waiting for trigger. break down of this minor channel could give us good Risk/Reward entry with stop above $70.00. Add on break of $69.12. Partial take of profits could be at $65, then we have strong level of support at $61 from where it started rally.
EShort
by andrew.berg
GE resolved Head&Shoulders, relative weaknessGenreral Electric resolved Head&Shoulders pattern to downside and closed below the neckline and 50 EMA. That tell us about relative weakness vs broad market. In case of down scenario of SPY (check my comments on this idea in the link below), this company from Industrial Industry (etf XLI showing relative weakness probably because of tension in Iraq and higher oil prices which lead to higher costs) could be good short candidat. Resistance levels are: break down point $20.60, then 8/21 EMA at $20.80. break below yesterdays low could attract more sellers and continuation move to bigger support at $26.20, then we have 200 EMA at $25.80
NYSE:GEShort
by andrew.berg
UAL is curling down This airline company found strong resistance zone at $48-$49. Bounced off it very agressively with gap down zone from $44 to $45 which is powerful sign that sellers keep control on price. From fundamental point of view there is tension in Iraq - one of the biggest supplier of Oil in the worls. Break in supplies leads to higher prices and then higher costs for transport companies. It pulled back to moving averages zone and now is curling down. You can put feeler here and on break down and close below $41.60 low. Potential Target could be reversal point from April 28 at $38.
UShort
by andrew.berg
1
ALXN bear flag This biotech company was sold off aggressively off the highs but caught buying momentum and covered part of those losses. It penetrated a bit higher then the bears wanted. Nevertheless, 8/21 EMA are hit with today's candle as well as trend line. And it triggers Short Entry below $164.00 with STOP above last swing high at $172 makes this trade attractive from R/R point of view as my target is $140 - low since mid of April. Intermidiate support is at the point of $156 and by coincidence there sits 100 EMA.
AShort
by andrew.berg
IBM bounce off of trend line and 200 EMA IBM is trading relatively weak to the market which is currently on highs and stock is depressed and below 200 EMA. After strong break up of $190 resistance it caught some follow through right to $199, but then dissapointing earnings was released and it dropped on powerful gap down. Series of lower highs and lower lows means that it is in down trend and sellers are in control as it is trading below all key moving averages. ENTRY trigger below previous low of the day at $186. STOP above pivot high and 200 EMA at $188 makes sence. TARGET #1 at previous low $182 then we have major support at $172. Risk/Reward 1:2 makes this trade worth taking.
NYSE:IBMShort
by andrew.berg
EBAY broke down of major supporteBay broke down major support at $50 and closed on dead lows at $49.60 on Friday showing relative weakness as markets trading on highs. Today, it opened with gap and caught some early follow through. Gap open could be new point of reference at $49.30, then we have $49.50 previous low of the day and then $50 psychological level which should act like resistance if sellers want to keep control on price. I want to see few days of consolidation below, so then we can expect continuation move lower. ---------------------------------------------------------------------------------------------------------------------------------------------------------- Read my earlier thoughts on EBAY in the link below ----------------------------------------------------------------------------------------------------------------------------------------------------------
NASDAQ:EBAYShort
by andrew.berg
LVS gapped down into major support at $72Casinos stocks showing relative weakness as they trade below key moving averages. At the same time major indexes are at their highs. It is hovering around 200 EMA at $73.22 and today gapped below, it could be new point of reference. Major support at $72 which is in tact since February 2014. Break and hold below for few days could lead to some downside follow through. Resistance is down trend line as bears keeping preassure on price as we can see with lower highs and recent swing high at $77.50. Potential target could be at $64 which acted like support during September-October of 2013.
NYSE:LVSShort
by andrew.berg
BMY broke down of major support on volume Drug Manufacturer Brystol-Myers was trending up and topped at $57. At $54 it dropped below key moving averages - for me its point to make adjustments. Recently it has been hovering around 200 EMA and now broke down with conviction on volume above average. The last potential support was at $47.50 but buyers failed to hold it. I think if it will hold below for the next few days then it may continue lower. Stop for swing traders above $50 (gap down pivot point) makes sence. Target could ve next important level at $42. Reasonable trade from R/R point of view.
NYSE:BMYShort
by andrew.berg
CAT classical "h-pattern"This construction mashinery company entered into strong uptrend since December 2013 after it broke up major consoldation resistance in the mid $80ish area. Now stock with the whole sector ($MTW, $TEX, $DD, $JOY) showing relative weaknes vs broad market. I use my 8 and 21 EMA to measure short term sentiment ant to make adjustments if i am positioned. It dropped its 8/21 EMA on 20th of May first time since mid March. And settling for a nice h-set-up which is classical pattern in technical analysis. Break down below $100.72 may attract more active, swing traders and I expect to see some follow through. Stop above previous swing high at $104.50 makes this trade attractive from R/R point of view. Target is $95 previous base support level, 200 EMA. All traders should manage this trade depend on their time-frame and strategy.
NYSE:CATShort
by andrew.berg
EBAY heading into major supportEBAY is on my short list. As it trades below all key moving averages including the most important one 200 EMA, means that bears in control despite storng market and technology sector as well. Earlier it failed to hold above $58 (breakout point) and definitely it is not a good sign for buyers. Ebay gapped down on earnings on 30th of April with pivot resistance at $52.75. bounced from major support at $50 which also acts like psychological level, but this bounce was really weak. There are entries inside that range but for more confidence we need break down of $50 then I expect to see some follow through . Next reasonable support is at $46 which could be my first target.
NASDAQ:EBAYShort
by andrew.berg
GS bear flag/triangleI like Short idea in Goldman Sachs (GS) here: 1) while the Dow and S&P have been trading nea rhighs I have seen a lot of divergences in the market. Weakness not only in tech but the banks also been an area of major concern. New regulation seems to have affected aspects of their business, and the future isn't looking as bright for the industry. 2) Bear flag. The stock borke down sharply in early April, and basically formed a bear flag/triangle type pattern. This pattern looks like it could resolve to downside for another move lower. Yeasterday, it was trying to fil the gap area but closed off the lows, reasonable price for SHORT ENTRY here, next resistance zone from $160 to $162. I am looking for move to $152-$154 (TARGET) support area and potential break down if market will show us some weakness. I will ADD if it will go through lows.
NYSE:GSShort
by andrew.berg