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New Trading Ideas

|Includes:Sierra Bancorp (BSRR), UXG

Yes, once again we've got a short/bearish and a long/bullish idea for you.

Sierra Bancorp (NASDAQ:BSRR) - Bearish

Despite the last short/bearish bank stock trade (NASDAQ:OZRK) not going as well as I would have hoped [see below], this is one of those setups with a risk-versus-reward profile that's too good to pass up.

As rewarding as volatile stocks can be, frankly, it's easier to trade setups that take a while to develop, and visibly accelerate. That's what I see on the nearby chart of BSRR.... a gradual shift in momentum that looks like it's starting to pick up speed. 

The fact that the selling volume is picking up and the 20 day moving average line is now acting as resistance is just a little gravy. 

Given how big the March-through-May rally was, there's actually a lot of retracement potential here. Factor in that Sierra Bancorp is in a long-term downtrend anyway, and the trade's potential is raised even further.

US Gold Corporation (NYSE:UXG) - Bullish

Against my better judgment, I'm trading something that has the word 'gold' in it. 

Actually, I have no particular beef with trading gold, whether it be as a commodity, as a stock, or as an ETF. I'm just not a fan of jumping into a pool that's full of amateur speculators who can remain irrational well beyond the point where they become insolvent. 

Nevertheless, I'm disciplined when it comes to charts, and if the nearby chart of UXG were any other stock from any other sector, I'd still be interested enough to buy in. So, I have to do the same for this one.

There are two basic things I like about this chart... the modest, well-paced progress we've witnessed since April, and the amount of room we have to recover 2007's highs. Is this a commodity play for me? Maybe a little, though it's not my exact intent. Given that lots of dollars are flowing into the economy and with interest rates being low, I sure don't think commodities are going to have a hard time heading higher.

If you're following my lead, I'll warn you now to prepare for volatility. 

Stocks: BSRR, UXG