Hewlett-Packard Co (HPQ) Bear Flag Chart Pattern

Looks like a bear flag on Hewlett-Packard. It is rising on low volume. Beware longs!

S&P 500 (SPY) ETF Short Trade Update

The markets rallied a bit today on some good news. This caused me to get stopped out of my short setup on the S&P 500 yesterday. My stop was at $159.50 and the high for today was $159.89. Looking at the price action, with the high being rejected today and price closing at $159.75, I decided to re initiate my short position. The volume today was low at about 93m shares.

I shorted at $159.80 at around 3:35pm today. I put my stop above today’s high at $160 just to give it some breathing room.

Here is the SPY’s chart today:

Tesla Motors (TSLA) Short Trade Update

Tesla Motor’s (TSLA) stock made a valiant effort for a comeback today but was rejected putting up another nice candle showing bears rejecting its high of $55.27.

The stochastic dipped down below overbought level of 80 today adding additional confirmation more red candles are coming for Tesla Motor’s (TSLA) stock.

I continue to wait this one out looking for at least one big red candle to take some profits.

I tightened my stops today to $55.30 from $55.99 yesterday. Here is Tesla Motor’s stock chart today.

Google (GOOG) Technical Chart Analysis using Elliot Wave Theory

Google’s (GOOG) chart looks interesting right about now. For those of you who want to go long, you might want to give pause and watch the price action for the next couple of days.

The chart pattern looks a lot like an Elliot Wave with today capping off what might be wave 5. If true, then, wave A, B, C are next and that is a reversal of the uptrend. Yesterday and today may be forming a “lower high” on Google’s stock chart. If there is selling on volume tomorrow or in the next couple of days, I would consider shorting Google’s stock with a stop at 827.80.

Here is Google’s stock chart overlaid with the different phases of the Elliot wave.

S&P ETF (SPY) Short Setup

The market has had a fabulous run this year so far. There’s a saying though that goes something like “Sell in May and go away”.  I don’t know how true that is over the years, but the S&P 500 looks like a good short opportunity right now after today. The market’s advance seems to be stalling.

The S&P 500 technically has formed a double top chart pattern. On 4/11, the SPY ETF closed at 159.19 with a high of 159.71. Yesterday, 4/30, it put in a similar high at 159.72 and closed at 159.68. Today, the market sold off .88%. The stochastic is in oversold territory and the volume today was above average at 135.8 million shares traded. The closing price of the SPY ETF sits right at the 8 day moving average.

I decided to short 100 shares at 158.92 with a stop at 159.50.

Here is the daily chart showing a double top. I will add to this short if it continues down tomorrow.

The S&P 500 ETF showing a double top chart pattern.

Tesla Motors (TSLA) Short Stock Update

Tesla Motors had another distribution day today on average volume. Tesla Motor’s stock dropped 1.41% today. Most of the selling happened in the last minutes of the trading day. Today’s candlestick was not able to break above yesterday’s high and made a lower low today. I tightened my stop to $55.99. I did not take any profit today. Yeseterday, I missed some possible support levels. In today’s Tesla Motors stock chart, I drew lines where possible support might be. The first would be at the 8 day moving average. If the stock touches this moving average, I will take half of my position off the table for a small profit.

Telsa Motors (TSLA) – Nice short setup

Tesla Motors has had a nice run on some good news. But now, the run looks overextended; at least in the short term. This looks like a great short setup for Tesla Motors (TSLA). On 4/23, the stock put out a doji candle with a long wick on top indicating a possible reversal. Volume was above average at 3.7m shares. The following day, the stock put out a red candle on average volume. TSLA stock had another distribution day on 4/26 on higher than average volume of 3.6m shares and finally today (4/30), it had bigger distribution day on high volume (5.5m) shares and another reversal candle.

The stochastic reading for TSLA stock has been in oversold territory since 4/18. It currently reads 83.89 and heading downward. Some support can be seen at the 8 day simple moving average ($51.45), at $46, and at $40.21. Below $40.21, I would look for a gap fill. See TSLA’s chart below: