As you've probably deduced, I look at a lot of stock charts every day. I greatly prefer taking on individual positions to indexes since – – if the market is generally going my way – – – they are a lot less work! I'd much rather set up a position and let it stew for weeks on end, ratcheting stops for profit protection along the way, than try to be a gun-slinger with big index trades.
By definition, I tend to prefer issues that have historically shown a lot of volatility and, in the case of shorts, have a large opportunity for downside. ASH is a good example:
Take note not only of the series of lower highs but – important – the 800% rise (!!!!!!!!!!!) since March.
I have entered ASH, as well as a few other shorts, with these stops.
ASH 45.81
CCL 34.96
CEDC 34.71
DD 34.60
DOW 27.25
FCX 73.44
GET 25.86
JPM 46.50
MDR 27.31
SA 29.72
STP 17.69
