Miles J. Stoner, @StockHollywood

Dallas, Texas

2.20.2013

Feb 21 - Thurs. "If You Hate"

SPWR - finally got a nice top and crack towards the end of the day, sucked up alot of longs at the top today as well so I beleive it has some panic in it now. I'm going to be short bias on all pops trading and keeping a core in hopes that I have a good piece if and when it does crack.
*So with SPWR its a set up I call the parashort, when you see a parashort this is what you look for when you hawk the short.
The Parashort
  1. This is a Day Trade most times, an overnight less often.
  2. Action is usually taken, not the first day of stalking, but often the second day (not in all cases).
    • In SPWR's case this will be a hawk that has happened over the last 4 weeks because the stock has gotten so over extened so far so fast.
  3. Over extention (happens fast)
    • Stock went from 4 to 8ish, which is a double 100%, then a slew of upgrades and tons of momo and the stock shot up from 8 to where she is now. Buffet bot a part of the company for roughly 2bil giving them a huge influx of cash.  
  4. Has yet to correct (Pull back hasn’t occurred)
    • The Stock hasn't corrected, at 8 it went sideways which was a small correction, but more of a rest. At that point it flag'd and I was looking long still because the validity of the news and upgrades gave way to bull logic.
  5. Sideways price action (stock has trouble with a certain level - over/under top) 
    • You can see the sideways action up here at 13.5 - 13.8.
  6. Para followed by a Lower High = Short
    • Would of and did take that trade many times and got stopped many times.
  7. Breaking Key Support Intraday, this means it’s a reshort or a cont hold from the lower high s/s (this is a big drop or rip down to scare longs, then u short the lower high)
  8. Lower Low indicative of a swing, If you have higher lows it might be gearing and not ready to drop yet.
    • 12.9 if it tests it may try to stay up, in that case take some off, but if you see a crack below then longs are selling. Wont' go straight down.
  9. Sometimes I short higher highs (it tends to be where novice buyers are) but they are scalps only, then hold when the lower highs are set.
  10. Resistance: Comes in the form as a previous top, a gap fill: either lower or upper part of the gap, but we look for previous resistance in combination with these indicators to initiate position.
    • 13.75-13.8
This is one of the 5 set ups included in the Boomwin Strategy, which you can read about more here http://www.boomwin.com/p/boomwin-strategy-lesson-preview.html