Saturday, August 19, 2006

Still watching ATI

The recovery of Allegheny Tech. (ATI) is just giving me more confidence that it is a great short candidate. Although I covered my first ATI short the other day, I think that the chart's price and volume action is just screaming to short it again once it regains its 50 dma and then breaks down below it. Just look at the recent recovery. The price keeps going up on lower volume, which is a very bearish sign.

That last short was good for a quick 10% gain. I have a feeling the next one will be good for even more.

Market leaders of the last bull market rarely lead the next.

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