Get Ready For the Party on the 50 Day Moving Average

{+++}Is death upon us or is this a just another “breather”? I’ve been saying for months that when they STOP buying the dips you can short with more confidence. Today they forgot to buy the dip and the S&P closed down almost 3%, materials rolled over, financials and commercial real estate dove on heavy volume.

I titled the blog the way I did because many stocks have broken their respective 50 moving averages, what was support for them has now become resistance. Stocks that haven’t broken their moving average look like they will be pulled like a magnet to the 50 day moving average. We were stopped on some remaining longs but our shorts should kick into overdrive. I have added three new names,as shorts, X, BAC and AAP, all look very vulnerable here.

When they raid the cat house they take the piano player too and all boats sunk today. Today was the first day of October and profits were taken with reckless abandon.

Net on the day the Dow was down 203 at 9509.28, the S&P 500 27.23 to 1029.85, and the Nasdaq 100 a whopping 52.58 to 1666.41.

Advance-declines were 5 to 1 negative on New York and 4 1/2 to 1 negative on Nasdaq. Up/down volume was nearly 20 to 1 negative on New York on total volume of nearly 1.6 billion. Nasdaq traded about 2 1/4 billion and had about a 15 to 1 negative volume ratio.

I will be away from the screens tomorrow but I will be back tomorrow evening for the daily recap. Hope to see some of you at the tomorrow at Nasdaq.

A continuation short play that I like a lot(for more aggressive traders) is MA (Mastercard)

Date Symbol Buy Price Short Price Stop Action Result P/(L) Triggered
MCO 23.00 23.50 Sold 1/3  sold 1/3 +2.00


MHP 26.19 26 Sold 1/2 +2.00 yes
NAV 40.31 40 Sold 1/3, Sold 1/3 +1.30


QSFT 16.30 16 Sold 1/2 +.80 yes
SIGA 8.43 7.65 yes
MELA 10.50 9.50 Stopped -1.00 yes
9-28-09 COCO 17.29 18.25 no
ZION 17.39 19.00 yes
9-29-09 AZO 142.00 146.00 no
9-30-09 YGE 11.90 12.60 yes
VNO 63.00 65.00 yes
XCO 19.05 18.00 Stopped -1.05 yes
MHGC 5.60 5.20 Stopped -.40 yes
10-1-09 CALI 6.35 5.50 no
CENX 8.97 9.60 no
10-2-09 X 41.10 43 no
BAC 16.02 16.80 no
AAP 37.70 39 no
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