It's Showtime for These Shorts
I do not chase sharp moves like the one we are seeing in the market today, so I use the down time to look for trading opportunities that would benefit from any potential short-term profit taking or consolidation. Specifically, I look for stocks that have been trading in tight ranges below resistance but unable to use today's positive momentum to move higher and breakout. If the market does see some corrective reversion off the momentary euphoria, these stocks are likely to lead lower. Two such potential short-sale candidates are both in the movie-theater business and have very similar charts.
Regal Entertainment Group (RGC) operates 519 multiscreen movie theatres in 39 states. The daily chart shows the stock price making a series of higher lows this year, with the $14.00 level acting as strong overhead resistance, forming a large ascending triangle pattern. Over the past month, the daily range has narrowed and Bollinger Band width has compressed, forming a smaller fractal version of the larger triangle pattern. The $14.00 level remains resistance, but the uptrend line drawn off the August lows and the 50-day moving average is supplying support....207 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.