September 16, 2009 Stock Market Game Updates

The surge today surprised me to say the least. I was expecting the market to turn downward and it did the opposite. I am betting on this surge running out of steam rather than rallying through the month like the July uptrend. Therefore, I've set up a few trades to take advantage if the market turns around when the buzz of the good economic news wears off.

I will short 300 shares of BTU at around 41.00 per share. I intend to cover the short when the stock reaches about 37.00 for a profit or 45.00 for a stop. The RSI is about to touch 80, which it has not reached all year. The stochastic is sitting way above 80, and the stock has been moving up for two weeks straight without a dip. I believe traders will be taking their profits from the latest rally and selling soon.

I will short 3000 shares of THC at around 5.80 per share. I intend to cover the short when the stock reaches about 5.30 for a profit or 6.50 for a stop. The RSI is sitting at 80, and the Stochastic has passed 80 and has begun its turn downward. The MACD is about to peak as well.

I will short 1000 shares of MTL at around 16.50 per share. I intend to cover the short when the stock reaches about 14.80 for a profit or 18.50 for a stop. The RSI is very near 80 and the other 2 times it reached as high this year, the price dropped shortly after. The Stochastic has peaked past 80 and looks to be turning down. Last, like the first stock, this has been moving up steadily for a couple weeks. I believe traders will soon take their profits and sell.

I will short 1200 shares of UAUA at around 9.30 per share. I intend to cover the short when the stock reaches about 8.00 for a profit or 10.50 for a stop. Both the RSI and the Stochastic have passed 80 and have begun to level off. The MACD is also approaching a peak.

F hit the profit exit point today, but I wasn't paying attention so I didn't take advantage. I'll have to wait until it falls back to 7.00, hopefully, in the near future. It seems like the majority of my open positions are now short sells. I'll explain the reason tonight with my overview and plans for trading tomorrow. Thanks for reading.