XMSR presents a good shorting opportunity

Andy Swan created and co-founded DaytradeTeam five years ago on a principle of empowering individual stock and options traders with the techniques and analysis methods typically reserved for elite professionals. His expertise in technical analysis and commitment to educating members earned DaytradeTeam a top-ranking among advisory services for several years.

Allegheny Technologies pulling back to trend line

Allegheny Technologies (ATI | Quote | Chart | News | PowerRating) is a very strong company in a strong industry. The stock has rallied very nicely this year, and has followed along a solid trend line for some time now. Recent downside market pressure in most sectors has pulled ATI back to the trend line that has proven effective time after time.

Will Mindspeed Technologies Inc pick up speed?

OK, here's the situation. Mindspeed Technologies Inc (MSPD | Quote | Chart | News | PowerRating) has been benefiting off the growth potential that lies within VOIP (Voice Over Internet Protocol). Bulls eat growth stories for breakfast! MSPD formed a nice up trend, then moved into an accelerated up trend. The stock has pulled back to the accelerated trend line, as so many others have in the past few days of weakness, and presents traders with an opportunity for some quick cash.

Day Trading XM Satellite Radio Holdings

XM Satellite Radio Holdings (XMSR | Quote | Chart | News | PowerRating) presents a nice intraday shorting opportunity here. The stock was weak throughout the day yesterday and created a nice looking down trend line. The reason I feel this XMSR is a good candidate for a short is simple, it is lacking support. There is minor support at around 22.70 and again at 22.15, but neither of these are significant levels of support.

With a low priced stock like XMSR, you stand to make substantial profits from a percentage standpoint with small moves. A play on this stock presents a slightly higher level of risk, but as long as you minimize losses with a relevant stop you stand to make sizable gains if the stock moves in your favor.

Happy Trading,

Andy Swan