Wednesday, November 04, 2009

Resistance shorts working

The daily charts out there are a complete chaotic mess --- what seems to be working more than break-outs are resistance short trades. Here are the two from last night's newsletter:

We wrote last night "Watch for possible reversal tomorrow near 41.9 resistance" and IYR came without a nickel of resistance and reversed and sold off for the rest of the day.

We wrote last night "Keep an eye on possible intraday reversal at the 50 SMA tomorrow near 45.5" and the stock reversed exactly at 45.5. Resistance shorts often work well on Fed days as traders are nervous on buying break-outs.