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Strategies & Market Trends : Short Selling, Dark Side, Bubble Busting Laboratory

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To: ild who wrote (132)5/16/2005 9:19:21 AM
From: russwinter   of 361
 
Well, let's see if we can't get some more activity here. Here's what I'm looking for, anybody can do it, just takes some looking. One of the classic bearish formations occurs when price rises as volume declines. This is especially true after a stock suffers a high volume alert.

Here's a example, and is what I'm looking for, so help me. Note the big high volume alert in YUM.
stockcharts.com[l,a]daclniay[pd20,2!b34][vc60][iUc20!Lf]&pref=G
Now the stock tries to retrace on light volume. The money flow and acc/dist lines are still weak. Strong resistance is at 48.70, a 16. There is also good support at 46.88, a 12.
stockta.com
The best strategy therefore might be a bear spread (buy June 50 puts/sell June 45 puts) or a naked call (sell June 50).
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