Internal divergences at the recent highs are suggestive of a weakening trend and with high volume down days happening, there is distribution evident on the chart for AAL.
Note that the "range movement" has broken its trendline and is close to a 2-month low, which is a solid definition of a downtrend.
43 is ideal resistance from 12-days of time there.
Target 38-37 over the next month.
Tim 1:12PM EST 7/3/2014
HAPPY July 4th TOMORROW!
Comments
timwest
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This idea panned out very well for the month of July. Book it.
A-shot
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+2 points goes to you
timwest
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Excellent chance to RE-short AAL here - 1:58PM Monday, July 14, 2014 43.22 last. Range movement hit a confirmed 2-month low and this bounce from oversold is slowing as the range of each day is less and less, signifying a loss of upside momentum. Sell short here, stop loss 44.25 still. Tim
A-shot
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Thanx for the updates on the ideas!
A-shot
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Would you please educate on why do you check for 43-45 bars in the range movement?
PS - Happy july 4th to you too!
HermanBrummer
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Good question, Lso wondering. Nice chart Tim. I also got short signals on my systems
timwest
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The Range Movement indicator is two months because that provides me with the time frame that I am most interested in trading in and it works well enough for me. The 21-day CCI is good at capturing signals since it is half the length of the Range Movement indicator. Typically you want your short term oscillator to be 1/3-1/2 the length of time of your longer term oscillator.
timwest
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Any comments on my comments 2use?
A-shot
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How can i have anything apart from a thank you for the care! Its a full answer to the question i have. But i am so waiting to see the MU chart and maybe some thoughts on GTAT? Did not expect such an awful day for it as it got a 3xcombo hit with 2 downgrades and a 25% asset sell from the CEO.
HermanBrummer
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Thanks Tim,
It seems to be pulling off, it is certainly going in the right direction. I was wondering, is there any other way to find a list of possible trades to short? I am having a hard time finding possible tickers for this and my overall portfolio is all long, which concerns me greatly.