My partner Kevin sends me a reminder this morning that "When the markets break down investors look for alternative ways to make money such as short selling."

Below is a daily list that FusionIQ generates highlighting stocks that have broken down on significant volume, typically a sign of large institutional selling.

We use these as a source of Shorting ideas . . .
click for jumbo table

Table courtesy of Fusion IQ

The next release of Fusion (2.0) will be out after Labor Day. 2.0 has many new features and user interface improvements, including a highly customizable home page. 

We may set up another free trial again if there is any interest.

Category: Markets, Quantitative, Short Selling, Trading

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

18 Responses to “Stocks Breaking Down on Volume”

  1. bh says:

    Free trial would be good, but the last one was a complete nightmare. I literally just stopped being charged last month for the december 07 free trial. you need to automate cancellation of the accounts or set up some other system to avoid that disaster.

    also, any info on what the basis is for the system and any historical backtesting would be cool. it was tough to figure out what the rationale was for the recommendations.

  2. Kevin says:

    Yeah, we had some problems with the early billing system — we use now — seems to be a huge improvement.

  3. Eric says:

    Stocks may be breaking down, but I’d be hesitant to short given that Cramer indicated last October, January, April and July that a bottom was in.

  4. VennData says:

    “I got you in a stranglehold, Baby. You best get out of the way….”

    – Ted Nugent, ‘Stranglehold’

    The Nuge’s politics tend to skew to the more conservative… and a conservative “Don’t buy, hold, but hold cash” strategy is what I’m suggesting now and for the foreseeable future (which is about the same time period as two and a half ‘going forwards.’)

    Oh, and don’t drink and shop.

  5. J. Bridges says:

    SEC & announcing new short selling regulations in the coming weeks, just passed on my terminal…

    This should really inspire confidence in the market, considering Washington is now following the G. Depression playbook in market interference. Gee, I wonder if desks will just find ways around the soon to be re-instated up-tick rubbish?

    Barry, would you mind posting– at some point– on the historical precedent surrounding these sorts of actions by the SEC and short sellers. At a time when every clown on TV is talking about a bottoming process, these sorts of regulations usually precede vicious and painful drops in equities (or, massive deflationary spirals).


  6. Jim D says:

    Yes, there’s interest :-)

  7. Tim says:

    Definitely interested in another free trial after the update is released.

  8. PHB says:

    free trial? You bet…

    Let us know know!

  9. OldEurope says:

    Fusion IQ FAQ: “…however the system has been rigorously tested. The results can be viewed by clicking (here;)”

    The link is still missing since you first promoted FusionIQ, the faq is very short anyway maybe you can get somebody to either delete it or offer the link.

  10. Toro says:

    NYSE composite volume is going to come in under 4 billion, just like the past four days. That’s the lightest volume since May. The sell-off today and yesterday are the lightest volume days since mid-June (excluding July 4). That said, the general trend in volume has been down during this rally. Thus, there is no reason to believe it is anything but a bear market rally.

  11. DR says:

    Very interested. I’m currently sub’d to RR&A monthly newsletter. Where’d all the content go? Maybe FusionIQ more better…

  12. malabar says:

    Is FusionIQ just a software system for ranking stocks?

    Barry, do you do any kind of market newsletter?

  13. Trevor says:

    Who said free trial?

    Looking forward to trying it out.

    Barry – keep up the rigourous analytical work. It’s refreshing.

  14. knut lufkin says:

    Free trail? Please

  15. Tom says:

    I’ve love to try a free trial after the new version comes out. I would also like to know a little more about how the system works. Black box “systems” with totally unknown mechanics don’t interest me. Too much like the way the Hedgies and Quants have been working.

    I do read your columns daily. Great stuff. Keep up the good work.

  16. Matt Rafat says:

    EWM and EWH are on your short list? What’s the rationale?

  17. Brian says:

    Free trials and I get along famously…

  18. Hugh says:

    A free trial would be great!