Short Squeeze

I don't post about the indexes to often. I did mention in a past post that I felt the NDX was in a broadening Top pattern and that it was going to break out to the upside. It has and looks very strong. The overall market is holding a higher volatility, measured by the VIX and just felt by everybody in it. The swings are just huge as of late.
Panic Buying is what might have happened in a lot of cases, causing a short squeeze. there could have been a lot of perceived breakouts that will turn into fake outs after some short covering ends. I look forward to seeing some failed patterns this week that could turn into panic selling.



Well to follow up on a few stocks form last post. I mentioned this was against resistance and I am mad that I was too chicken to take a position. 20 point drop in 2 days.

CTSH was stronger than I guessed as I had sold my call a little early. It really has taken no breather and I could not be more disappointed in myself for selling out of my position so fast. I guess 90 looks good for a target and any price in the low 84's looks good for an entry.
POT - another favorite of mine. I bought some contracts 2 days ago when it was just below support. Earnings are around the corner.
I took a big speculative stake in NBR on Friday. I think the stock has great fundamentals. There was a nice surge in volume and I am banking on my entry and earnings next week. Depending on your time frame, you could make an argument that this stock is going down, up, or sideways. This is purely and earnings play for me.

CROX - I have only played this twice, once for a loss and once for a profit. Both were bullish plays. If I remember right, the loss was bigger than the profit :-( On a personal note, I hate the shoes. I think they are just plain ugly, coyote ugly. It did break out last week and seem to come back for a re test. I took a bullish position and we will see if it bounces, I am looking for at least $3 to 50.

PCAR -Another stock that has been kind to me. I played it last earnings and was obviously rewarded very nicely. Since then, the stock has been very range bound trading sideways. I have sold some options and taken advantage of the higher theta and IV, but it clearly broke out, re tested 91 ( my entry ) and has bounced. Earnings are Monday and this is how I am going to start the week. I am not going to be shy about saying I am looking for 98 to 100.

CAH is still forming what looks like a nice H&S pattern. I think the break of support is coming and I loaded up on some PUTs, maybe a little over all profit taking in the market will send this down.

Still not a lot of bearish plays that I am looking at, stopped out of ASFI, I played CAL for a quick gain last week. My BNI is do or die this coming week. I will try to get a better list later this week of some stocks that might produce failed patterns.