Fairlead Strategies Idea Generator
Vishay Intertechnology (VSH) & Update (PSQ)
We recommend taking profits in the ProShares Short QQQ (PSQ), noting the underlying NASDAQ-100 Index (NDX) is reacting positively to a short-term oversold “buy” signal from the DeMARK Indicators®.
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A short-term oversold bounce in the broader market seems likely due to widespread exhaustive signals from the DeMARK Indicators®. One stock that could outperform is Vishay Intertechnology (VSH):
VSH has seen a loss of short-term downside momentum per the MACD histogram pictured below, enhancing a short-term counter-trend “buy” signal from the DeMARK Indicators® that flashed late last week. The signal supports a two-week rebound.
VSH is also oversold per the DeMARK Indicators® from an intermediate-term perspective, emphasizing its short-term oversold condition. Buyers have stepped in around $17.60 in the past, creating support on the chart, following a long-term oversold reading earlier this year.
Targeted resistance for VSH is defined by a 50% Fibonacci retracement level ($19.67), which comes near the weekly cloud model (not shown) and the 200-day moving average. An automated stop-loss level from the DeMARK Indicators® would trigger on an open below $17.98.
Vishay Intertechnology (VSH, $18.48)
Target: $19.67
Stop-Loss: $17.98 (on an opening basis)
As we need to move quickly on these opportunities presented near the close, I'd find it helpful to have at the top of the recommended security a simple clear way to get the right impression would help. It's also sometimes difficult to think straight.
So simple is beautiful:
Long at X
Stop at Y
Target Z
Why? VSH looks, at first glance it could be a long or a short!
Why should the stop be listed right below?
Risk control is the more important item to get right than a first impression of the target.
Submitted for what it's worth ....
Jonathan