Tutorial on intraday trades, chart interpretation, intraday stock chart set-up and bullshort stock pick of MITI at 2:55 minutes mark.

“XTO has had a big 3 days and profits should be taken tomorrow from this run of $45 to $52.59 in 3 days.”

“TACT is making lower lows and lower highs and should easily drop below $11 in the next week.”

“This could give us a decent short if they [the coal stocks FCL, ACI, MEE] follow the pattern established in the last 2 ½  months of lower lows and lower highs; ACI, Arch Coal would be my first choice as a short.

“It is too late to buy the coal stocks long, especially ACI at this point, unless you enjoy losing money!”

XTO sold off $5.50 the following two days.

TACT sold off from a high of $13.75 on this bullshort stock pick and corrected to $11.50, then rebounded to $13.69, then went down for good, all the way down to $5.10 for a potential profit of 168%.

The coal stocks FCL, ACI and MEE sold off heavily with the peak price being that day of this report for months to come.  FCL, Foundation Coal,  hit a high of $64.84 that day and dropped 79.3% for a potential profit on this short sale of 382%!

MEE, Massey Energy, had a high of $70.16 that day and dropped to $15.03 for a potential profit on this short sale of 366%.

ACI, Arch Coal, had a high of $57.45 and corrected to $15.03 (coincidentally same as MEE!) for a profit potential on this short sale of 282%.

“BAC.Bank of America…..I think this is a process of breaking down in the financials.”
“LEH, Lehman Brothers…….this is a very negative looking chart.
“FNM, Fannie Mae chart looking very negative.”
“FRE, Freddie Mac has a chart pattern that I call a death march…..these usually end up in bankruptcy.”
“The NASDAQ Composite looks like to me it is in the process of breaking down…..”

“Watch LEH, Lehman Brothers for a potential crash similar to BSC, Bear Stearns.  These investment banks work on perceived confidence that they are solid to work with but if their customers or other banks won’t do business with them it could become a house of cards.”

“Note that the NASDAQ Composite daily stock chart has more work to do on the downside than the Dow Jones Industrial and the S & P 500 index.”
“LBYTA, Liberty Global Class A is turning over now but has only about a 12% profit potential so I passed on it as a short.”
“CPHD and MYGN are weakening and both corrected today as expected.”
“ . . . . . but look for any signs that they [coal stocks FCL, ACI, MEE} repeat the pattern of lower lows and lower highs as we have seen since mid June.”

LEH, Lehman Brothers filed a liquidation bankruptcy (not even a reorganization protection) a month later!

The NASDAQ Composite went from 2,404 to 2,063 several weeks later for a drop of 14%.
           
LBYTA, Liberty Global dropped from $33.76 to $12.01 for a profit potential of 181% on this short sale idea that was passed on as a minimal profit potential.

CPHD continued to correct the following day from $19.49 to $8.48 the following 7 weeks for a potential profit on this short sale of 129%.

MYGN had only a 25% profit potential as a short sale but would have been stopped out before that profit was reached.

The coal stocks FCL, ACI and MEE sold off heavily with the peak price being that day of this report for months to come.  FCL, Foundation Coal, hit a high of $64.84 that day and dropped 79.3% for a potential profit on this short sale of 382%!
MEE, Massey Energy, had a high of $70.16 that day and dropped to $15.03 for a potential profit on this short sale of 366%.
ACI, Arch Coal, had a high of $57.45 and corrected to $15.03 (coincidentally same as MEE!) for a profit potential on this short sale of 282%.

“Independent oil stocks that may be bottoming now are XTO, XCO, COG.”

XTO, XTO Energy moved up 21% the following 6 weeks.

XCO, EXCO Resources, went from $21.56 to $28.97 in the following 7 trading days for a 34.3% profit potential.

COG, Cabot Oil and Gas, went from $42.63 which was the opening price the next day to $46.52 a few days later.

FSYS, Fuel Systems Solutions, short sale idea.

“Look at APII, Action Products Int’l, has the classic bullshort pattern even though it is a low priced stock.  A few brokerage firms allow you to short a stock under $5.  With the increasing price and volume, I would guess tomorrow is a probable top in the stock price.”

“The airline sector really has made a big move and even though the daily charts look good on UAUA, ALK and DAL, I don’t want the exposure of being long airline stocks (especially after a big run) when oil starts to rebound.”

“The ag-chemical stocks (AGU, MON, MOS, POT) are rebounding off a low on Tuesday and may continue up for another day or two.  The next question is whether they will make a lower high followed by lower lows in the coming weeks, which I think is probable they do continue the downward pattern.”

“Copper manufacturer FCX, Freeport McMoran and industrial metals company rebounded sharply today when copper prices firmed upward today on the commodity market.  This stock could rise for another day or two before resuming a downtrend.”

“VISN, VisionChina Media was in a corrective mode and dropped to a low of $17.75 then rebounded to $23.35 today on the hype that the Olympics in Beijing is going to benefit the company.  This is worth a small short position that may last for a week or two.”

The ag-chemical stocks (AGU, MON, MOS, POT) moved up nicely the last 3-5 days but I still see this group as lower lows and lower highs and that describes a downtrend.  I see the air being let out of that bubble or at least that is what the pattern looks like.

“You should see the videos tonight.  On the first video, I reviewed the 1 min charts of MKTY, the technique called Bullshorts that I introduced to you on last night’s report.  It was a classic bullshort that ran up another 10% after the open this morning, then it peaked at $5.49, then dropped 31% by the end of the day.”

“It looks like MKTY will drop some more in the morning and the short can be covered somewhere around my target price of $3.00-$3.20 for a potential profit of 71% at $3.20.”
                                   
“AGU, MON, MOS and POT really got whacked today dropping anywhere from 5.5% to 9.4% today alone.   There might be a tradable rally for a 2 or 3 day swing trade, especially if it heads down tomorrow morning to give us a better price.  This is a very short term trade with limited potential.  These stocks are turning over and heading down so look out for lower lows and lower highs.  Any swing trade long should be kept with idea of making smaller and quicker profits.”

“GENC is another stock I am watching for a potential short.  If it moves up over $16 tomorrow, then I will sit on the sidelines and watch how far it moves up and how it acts before opening any short position. “

“The commodity stocks that I follow, ag-chemical stocks MOS, MON, AGU, and POT had a big up day today but I don’t think this group of stocks is tradable now that they had such a big move today. My hunch is this sector is going to have lower lows and lower highs which describes a gradual downtrend.  I think the air is going to be let out of this sector but they still can see sharp rebounds upward within a downtrend.”

“I am not too interested in the coal stocks (ACI, FCL) even though they have been down a lot.  They corrected much deeper than the energy (oil) stocks so they may not come back up as much and they look tentative now.  That could be a clue that oil and gas stocks could be turning over but they look much stronger than coal.”

“But  LEH, Lehman Brothers also looks like it is on thin ice, with headlines showing the CEO is shopping the company to sell itself but obviously, any qualified buyers in the banking industry have their own liquidity problems.  I would stay away from LEH…..”

“In the midst of all this bad news, gloom and doom, there is substantial opportunity to profit.  I know that your gut will say NO – it is always hard to go against the grain.  Eventually, I think soon, the financials will have a rebound and we are likely to see some 30-40% moves in some of these stocks just on what we call a “relief rally.”

“And I suggest you stand ready to profit from a likely rebound (very likely).”

“I still think some (WFC, BAC, JPM, GS, MS were stocks we were working with) financial stocks will do well and I am still eyeing another attempt at buying BAC, Bank of America …..”

The stock market is deeply over-sold but let me explain that any sharp rebound upward in stock prices can be a rebound within a general downtrend.

“It would not be surprising to see these two stocks (FNM–Fannie Mae, FRE, Freddie Mac) double in price or more in the next couple of months.”

“ICE, Intercontinental looks very interesting as a long.”

“BAC, Bank of America should move up nicely this week…..”

“You might remember my comment on HK, Petrohawk Energy, a couple of days ago.  I was setting an alarm on it to wake me up for a possible short sale, which would be my 2nd helping on the short side.” “HK is moving up nicely and I will evaluate whether this is ready to short tomorrow but $50 is looking good.  I’ll look for how high it moves up, how the market is acting and what the price of oil is doing.  Stay tuned for more on HK this next week.”

“ESLR, Evergreen Solar looks interesting here under $9.  Target profit potential is around 20% from here.  It would be good to buy long around $8.50-8.75 for it.” 

“If the pattern continues with the agricultural chemical stocks like MON, MOS, AGU, and POT……… Don’t be surprised to see the commodity sector stocks like these 4 here, for example, will eventually let the air out of the balloon.”

“This sharp break down in the oil sector stocks could be a signal that it could be developing an intermediate top, meaning that these oil stocks could have a general direction of downward in the next couple of months.”

“My overall perspective is that the economic cycle we are in and are going toward is negative for stocks…….”
“Any rallies in stocks can sell off in a vicious and sudden manner, as we saw today…..”      

“The financial sector as a group still looks like it has more to drop but my guess is that BAC, Bank of America is most likely to be one of the first to turn up based on the technical indicators…… but it still isn’t ready to buy yet although I am watching it this week for a possible long entry for a short holding period of anywhere from 2 weeks to 2 months.”    

“I will be looking for a bottom in BAC in the next week or so, I am guessing that $20 will hold ….”

“When the financial sector starts getting some buying, it is very conceivable to see 25-40% rebounds on the technical bounce AND many times, the managers and hedgies could jump on a small buying bandwagon in this sector.” 

“HK was a short today and I am looking for somewhere around $35-36 for a target price to cover the short in the next few weeks.  Today’s high was 46.42 and that would give a potential profit of about 30% left in them.”

“GMXR, GMX Resources, hit a high of $78 today and dropped to $71.13, so this has started its correction similar to HK.  I am looking for mid to low 60s so this doesn’t have quite the potential profit as HK but 20% is possible on the short side.”

“SQM was a short idea at about $51.50 – $52 a couple weeks ago and hit $35.10 July 3rd.  It went lower than I thought but the potential on this was 69% profit potential.  I was late to see this stock by a few days but it did hit my target price of $40.”