MON 9/29: MPAA – SELLING (ALL) P/L: -$304.98 -3.0%

9:48 AM – Shares are making a negative reversal this morning on above-average volume. The stock appears to be struggling with resistance at its 10 DMA and is beginning to form a downtrend. I’m out.

ULTRA Trader’s Tip: Negative Reversals

  • A negative reversal occurs when a stock trades higher early but closes lower on heavy volume.

  • It often signals distribution, with institutions selling into strength.

  • When this develops near a key moving average like the 10 DMA, it can mark the start of a short-term downtrend.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.

 


James had served as Editor-in-Chief of the first independently licensed website to offer stock reports and services based on the CAN SLIM® investment system.

Since the late 1990s, he has been analyzing growth stocks and providing investor-focused research rooted in time-tested technical strategies. Over the years, James developed a strong ability to quickly and accurately identify high-ranked trading candidates using this proven approach.

He has worked with a wide range of investors — from professional money managers to individual traders — helping them apply this disciplined system in real-world markets.

James has delivered weekly market commentary as part of the “Your Money Matters” radio program, broadcast on both ABC and CBS radio networks, and for a time was a daily guest on the Investor’s Edge radio program.

Today, he is the developer and founder of U L T R A — a robust yet easy-to-use trading system built to identify and manage high-probability stock trades based on strict technical rules and real-time alerts.