5 Swing Trading Short Setups

There are many potential short setups but very few of them are showing signs of a reversal yet. So, maybe on Monday, we will begin seeing some reversal candles.

Here are some stocks to add to your watch list:

Have a great weekend!

shorting stocks, stock charts

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This entry was posted by Craig on July 10, 2010 at 5:46 pm, and is filed under Stock Charts, Technical Analysis. Follow any responses to this post through RSS 2.0. Both comments and pings are currently closed.

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Comments (42)

#1 written by Mike
about 1 year ago

Nice – I’ll add em to my list. I’m also watching OI, CHSI, and CI for short setups. CHSI has started to pivot.

Just a heads up on BAC, its reporting earning on Friday morning.

Happy trading.

Mike
- #2 written by Craig
  about 1 year ago
  
  Thank for mentioning the earnings release. I meant to put that on the chart!
#3 written by gilbert
about 1 year ago

Hi Craig, would you consider this chart as a potential TAZ play on the long side?

http://stockcharts.com/c-sc/sc?s=DAIO&p=D&b=5&g=0&i=t09370264340&r=5484
- #4 written by Craig
  about 1 year ago
  
  No, I wouldn’t trade that stock. Not enough volume.
#5 written by Basil Croeser
about 1 year ago

Hello Mike,

As a fx trader I’d very interested to know if you do the same in depth analysis for forex as well as stocks, and if so, where could I view same?

Kind regards,

Basil.
- #6 written by Craig
  about 1 year ago
  
  I don’t trade Forex. But, I have been thinking about trying it out.
#7 written by Joseph
about 1 year ago

Hi Craig…thanks so much for your unselfishness in sharing and for a great site!!
- #8 written by Craig
  about 1 year ago
  
  …and thank you for the nice comments!
#9 written by Joe
about 1 year ago

X is another nice looking short setup. When it falls, it falls
#10 written by Hugo
about 1 year ago

BAC just admitted to hiding six transactions that hid billions in debt.
#11 written by Ken
about 1 year ago

Hi Craig,

Thanks for sharing, this is by far the most useful website I found on swing trading

Anyway, will keep these in my list even though I’m more of a small cap player due to limitation of my capital

I have PBY on my list right now – hopefully I can catch them when they fall. Cheers!
#12 written by Mario
about 1 year ago

Craig, I fully subscribe to Joseph’s comments. I sincerely thank you for teaching me how to “fish”…. Just a little question. All the stocks you mentioned are in he TAZ zone…Are you waiting for a bearish candlestick to enter a short set-up. Also I have been mainly trading in options . Have you ever thought of say buying a put instead of shorting??
- #13 written by Craig
  about 1 year ago
  
  Thank you Mario!
  
  Yes, I am waiting for a bearish candlestick pattern to develop. I have never traded options.
#14 written by Johann Freeman
about 1 year ago

Hi Craig,

thanks for your new good blog. Today just CECO shows us a red bar and it is an inside bar. Are you waiting i.e. with a stopp sell order under the low of last friday ~24 ? For all others I would wait what happens tomorrow.

regards Johann
- #15 written by Craig
  about 1 year ago
  
  I shorted CECO today but you could short it under 24 tomorrow. There is a double top on the hourly chart which makes for a good stop location.
#16 written by Johann Freeman
about 1 year ago

Ok, it sounds logical, what will you do with the others ?
#17 written by Jay Lee
about 1 year ago

Craig, what happens if it gets out of the TAZ zone
say for example S&P500 is at 50 day is it still able to short if it reverses?
is the 10 /30 a guideline or does it have to stay with in those parameters in your system
thanks
J
- #18 written by Craig
  about 1 year ago
  
  The S&P doesn’t have to be within the 10/30 – just individual stocks.
#19 written by Mike
about 1 year ago

Hey Craig, did you get stopped on CECO? I had to open shorts. One was stopped yesterday and the other is flirting with the stop today. Stuborn market!
- #20 written by Craig
  about 1 year ago
  
  Still in it – barely.
  
  (I hate earnings season!)
#21 written by Johann Freeman
about 1 year ago

I think the trading ideas of craig are still good, it’s just a question of some days when this stock going down.
#22 written by Mike
about 1 year ago

ARW is forming up for a nice short depending on tomorrows action. Tail bounced off 30 period ma and the hourly bounced off the 200 hr ma.
#23 written by FastTrader1972
about 1 year ago

Have you ever used a site like stockscans.com for custom scans? I have not seen any other site like it.
#24 written by Hung Tran
about 1 year ago

Craig, if BAC made a red bar just little out of the TAZ zone is it still worth shorting?
Thanksss
#25 written by Hung Tran
about 1 year ago

I decided to take action. Shorted BAC today.
- #26 written by Craig
  about 1 year ago
  
  Careful. They are reporting earnings tomorrow morning.
  - #27 written by Hung Tran
    about 1 year ago
    
    Aren’t they expecting a decreasing earnings report? That should help our shorting position shouldn’t it? But then again, what do I know..
#28 written by Mike
about 1 year ago

@ Hung Tran, If the decrease in earnings is expected and well known then its probabaly already baked into the price.
- #29 written by Hung Tran
  about 1 year ago
  
  I see,… thanks Mike
#30 written by Hung Tran
about 1 year ago

Update, i’m still in CECO, anybody else? William R% just reached overbought today for CECO and it’s tilll under 30 day EMA.
#31 written by Mike
about 1 year ago

Not here. I never got in. Was waiting for a better entry. Its actually looking fairly strong today. It has relative strenght compared to the markets.
#32 written by Joe
about 1 year ago

Hey I was just wondering if anyone here is using this method with options? I love the idea of trading options swing trading, I just don’t know if you should go itm or otm and what you would use for your stop loss? If anyone here swing trades options, if you could email me at joeanderson2213@yahoo.com I would love to talk to ya! (sorry for posting this here Craig, dunno where else I would post it)
#33 written by Hung Tran
about 1 year ago

BAC is riping guys, and so is CECO. It’s time to thank Craig =D
#34 written by Tony
about 1 year ago

Hi Craig,
Thanks again for posting these setups VERY HELPFUL .
For CECO ,we have a nice double top on 15mn. chart and i think we also have a swing trap and a T30 pattern w/a shooting star on daily chart ,very nice setup for short my only concern is the Williams %R for S&P 500 (oversold).It is maybe too late ?

Thanks again.
- #35 written by Craig
  about 1 year ago
  
  CECO has formed yet another double top, so maybe this time it will finally make a move. But, I would be hesitant to open up any new positions in a now oversold market.
#36 written by bullfighter
about 1 year ago

Hi Craig,

Nice new Blog.

May i ask you, what´s your target on CECO Short?

Thanks, and go on.
#37 written by Mike
about 1 year ago

WOW – CECO went parabolic this morning.
#38 written by Hung Tran
about 1 year ago

What’s going on with CECO? There was no news out and it just exploded like that?
#39 written by Joe
about 1 year ago

And that is why you don’t use stops
#40 written by Hung Tran
about 1 year ago

Ok, team, CECO is scaring me now. I’m using mental stop, so i’m not sure if I should cover now after today. What are your thoughts?
#41 written by Mike
about 1 year ago

02:36 PM Eastern Daylight Time, 07/19/2010 (MidnightTrader) — For-profit education stocks like Apollo Group (APOL:$47.91,00$2.34,005.13%) , Corinthian College (COCO), Career Education (CECO:$26.06,00$1.12,004.49%) , DeVry (DV:$53.49,00$0.64,001.21%) and Education Management (EDMC:$17.55,00$1.79,0011.36%) rally ahead of a draft report by the Department of Education on gainful employment that may be issued this week.
*****************************************************************
Unexpected news like this can and does drive a stock. Its hard to say what it will do up until and when the report is released. My advice is simple. You need to look at why you were in the trade to begin with. If the premise is no longer correct then cut and run. If the premise is still correct then work your plan.
#42 written by Finding the best CNA School
about 1 year ago

I’ve recently started a blog, the information you provide on this site has helped me tremendously. Thank you for all of your time & work.

Don’t Make This Mistake If You Are Going to Trade Breakouts

about 1 year ago - 14 comments

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