Good Advice Found Here

In my April 20th, 2015 article What Might September Bring?, I referred to a key tip about shorting stocks in William J. O’Neil’s book How to Make Money Selling Stocks Short.

Referring to the timing of short sales on individual stocks, his statement was “…the optimal shorting point will, in the majority of cases, present itself five to seven months or more after the absolute peak in the stock.”

Many of the examples in the book show stocks that initially sold off, but within 5 to 7 months returned to key moving averages or areas that had been support. If they started selling off from that re-test, a higher probability short trade would usually present itself.

Actually, a few days after I wrote that article, Apple stock (AAPL) set what turned out to be an absolute peak on April 28th, 2015. It tried to break to new highs in mid-July, but failed. The stock sold off sharply in late August, following the general market.

Then along with the general market rebound in October, AAPL regained some of its losses. Matching Mr. O'Neil's research, the stock made it back to a key moving average, the 200-day MA, about 6 months after the April peak. This proved to be a good point to short the stock (or take bearish option positions), because from that re-test of the 200-day MA, AAPL has since dropped 25%.

That inability of AAPL to work to new highs in June caused me to write an article on July 6th called Will You Be The Last Buyer?, focusing on Apple Inc (AAPL) and Facebook Inc (FB). I pointed out how volume had steadily fallen off in both stocks as they set recent highs. My article ended saying ‘Before you click the ‘buy’ button on a new addition to your portfolio, look for evidence that you might be one of the last buyers for that stock.'

So, were you the last buyer of AAPL back in July, or were you looking for a re-test of previous support or a key moving average in the 5 to 7 month period after the April high in order to short the stock?

Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day.  To find out more, please click on the following link: www.markettamer.com/seasonal

By Gregg Harris, MarketTamer Chief Technical Strategist

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Gregg Harris is the Chief Technical Strategist at MarketTamer.com.

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MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.


This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.


The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.


The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.