Newmont is one of those charts that I would just say ‘pass’ to and move on to the next stock. The long term trend is sideways and the stock is currently testing its 200-day moving average. While short term traders would probably look to go short, especially if it stays under the 200 DMA, I could see a case for longer term traders wanting to go long. The nice thing is that there are good, low risk entry and stop-loss points for either case. Here’s a daily chart followed by a weekly chart of NEM:
Mike-
UPS is testing the 200dma at 75.76. If it breaks the 200dma would you consider shorting it or buying the Feb 75 or 80 put options. Yesterday I bought and sold the put options. It was down so much yesterday I thought it would make a dead cat bounce today but it kept heading south and is approaching the 200dma. If institutions don’t support the stock at the 200dma I think it could go lower. Any thoughts on UPS as a short canidate?
Thank you,
Joey T.