Yes, shorting CYPB would be fighting the trend here. Resist the temptation to do it. Also since CYPB is a $2.50 stock that is thinly traded and has such high volatility it is really risky to be playing period anyways.
Alright, now that you've identified CYPB is in an uptrend. its ONLY a buy when the RSI or Stochastics, whichever you want to use is very low, or in other words, oversold. It may never happen which is fine. Remember you are trying to put the odds squarely in your favor. Walk away from those alternatives that don't meet all of the criteria. Don't worry there are thousands of stocks to choose from.
There are ALWAYS some meeting the criteria. You just have to find them. If the trend changes to neutral or down in the process of going to low RSI/Stochastics (i.e. oversold), then its no longer a possible buy. Then it becomes a possible short and then you are looking for the overbought, high RSI/ or stochastics. Again, that may never happen either. Just find another stock.
Here's an example of one I'm doing right now with real money. Look at a company called Synopsys (SNPS). Notice the trend is down and the5 day stochastics are overbought, i.e. over 80. Good short opportunity. If it doesn't do what I expect, I'll get out. The odds I think are squarely in my favor though. That's the best you can do. |
