Trader Mike

I hate to add to the bearish consensus but I have to call ‘em like I see ‘em. Right now I’m seeing a lot of charts which look ready to roll over. A good number of them look a lot like the QQQQ chart — a weak bounce back to the 50-day moving average which reminds me of many of the patterns in William O’Neil’s ‘How to Make Money Selling Stocks Short’. For now the opportunities look better to me on the short side.

Below are charts of the indices as well as some of the better (worse?) looking stocks I found in my scans, including LRCX, BRCM, AAPL, MVL, RIMM, CIEN, RACK and GOOG:

In my recent survey a few people mentioned that they’d like me to review some of the charts that I post to see the results of my ‘picks’. I’ve never really done that for a few reasons:

I know that some will be winners and some will be losers. I’m not one to break my arm patting myself on the back over a winning pick nor will I cry over a loser. The goal is to make money, not to be right. If I can be ‘right’ 50% of the time and still make money I’m cool with that.

Actual results will often vary from the theoretical results based off of just looking at the charts. Things like you actual fill, if the stock gapped away from the ideal entry price, getting shaken out, etc. all play a part.

The length of time one holds the stock can have a great impact on the results. If a long candidate went up 15% in a week and then dropped 40% was it a winner or a loser?

So anyway, by popular demand here’s a look at the charts I posted on September 22nd:

Charts of ADSK, AQNT, AMT, BRCM, FLSH, HAR, GMR, SIRF and TXN