Monday, August 15, 2016

How to Profit by Shorting "Most Bullish Stock"

From the desk of Sagar Nandi and Superior Profit.

While Day Trading, Shorting the Stock that is strongest in the day and coming out with profit confidently and easy may sound to many like trying to read computer up side down. And it is indeed like that for most traders.

What many of them lack is a robust tool  set to identify the exact point where to "reverse" or "fade" the Stock and take a reverse trade. Short trade in the case of Strongest Stock.

Superior Profit Day Traders have the tool they need for such situations. A tool set that is easy to use and unambiguous. And they used it beautifully today by Shorting Disney (DIS) as a Day Trade.
As you can see above, Media was the strongest Industry Group in DOW today (10th Aug 2016). And that was mostly due to Disney. Disney was clearly the Strongest Stock in DOW from beginning of day. Later it pulled back a bit. Still ending the day second most strong in Dow Jones Industrial Average.

In between that up move and pull back, our Superior Profit Traders easily took the Short Day Trade and profited from it.

Here is how.

Disney was in news from morning as its earnings came out and the Stock started going up strongly. Superior Profit traders looked up the Stock using easy to use ready made templates.

Below is Disney Daily chart using Clean Template. That clearly shows the potential resistance points in terms of Watermark Level (horizontal pivot levels) as well as Memory Trend Lines - very smart and automatically drawn trend lines that may come from few days back or few years back.
Traders noted that the Memory Resistance was around 99 as marked in the chart above.

​They also looked up the Weekly chart - below the Backdrop Template view of Disney using Weekly chart.  Backdrop is the usual template used to analyze Weekly charts in CUE System.
Here also, the traders noted that the Resistance Memory was at same level of around 99.

That 99 level was thus established the potential Short point for the Stock.

Now what was left was to use Intraday (5 or 10 Minute) chart using CUE Fine Tune Template to take a Short Day Trade when the opportunity came. As explained below.
Superior Profit Day Traders waited patiently for price to reach the pre-decided resistance level of 99 AND then tilt down - just enough so CUE System could draw the down arrow Stretch Release Bearish signals for him. A signal to take the Short.

With Stop just above Day's High - that Stop was never hit. Exact level of Stop was decided using CUE Protection Signal (not shown here).

The Stock fell from the Short Entry Stretch Release point and never looked back.

Some traders booked profit as the Stock went down and covered much more than the Risk amount.

Some closed the trade as Fine Tune chart showed the Bullish Stretch Release signal (up arrow) signal as marked in the chart.

If partial position was held, that was closed at End of Day. As the trade was initiated as Day Trade our traders don't usually carry it over to next day.

This was an easy Day Trade - Shorting the strongest Stock of the day. All that was needed was to find the Memory Resistance in Daily and Weekly. Patiently wait for price to come there. And let CUE System draw the down arrow Stretch Release signal to tell one to Short Disney with very narrow Stop Loss and much bigger potential profit.

A robust CUE  system essential to the trade. As was a good understanding of how to use these simple CUE Charts.

To ensure our traders are always fresh with CUE Charts, Superior Profit conducts regular Weekly Live Class explaining the system to traders all over the world.  You are most welcome to join the classes by registering here. That is if you would like to take such confident Short trades (or Long trades) - even if that is against what media is telling us at that time.

Confidently. And profiting from what we see on CUE Charts rather than following media discussions.

That is the Superior Profit Way. Be it for Day Trade. Or Swing Trade. Or Long Term Investment. Many other such trades/investments are shared in Superior Profit Traders Community. You might have a look !

Sagar
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