**Update: Dec. 10, 2013 –  bearish news is starting to come out

**

Signal:  Continue Short

This morning Seeking Alpha tipped us off to a bearish report by SNL Financial about lower projected renewal rates for insurance premiums.  As a result, RE was unable to break through the 20 day EMA, is down 1%  on the day and is looking to go lower.  Looking at the price action, it appears some large buyers were attempting to prop this up, possibly for the purpose of extending their window to get out.  Still watching this one closely since, even though there is plenty of down side, the trend is still officially ‘up’ so the down move might be considered corrective until a solid down trend  develops.

RE Daily – click to enlarge

 

Update: Dec. 9, 2013 3:00PM

Signal:  Continue Short – Stop Tightened

RE, while it has a great historical trading pattern, has failed to significantly drop since the algorithmic Sell signal.  The stock is trading below our $154.74 entry price, but for the past several days it has found buyers just above $150.   We are normally used to seeing a stock collapse after an algorithmic sell signal, so we are tightening the stop from 159.38 to 154.70 which would be breakeven on the trade if hit.

A slow grind down

**Update: Dec. 3, 2013 9:00AM

**

Signal: SELL

After the email alert yesterday, RE rallied to a high of 156.75 before closing at $154.98 – slightly above our entry price of $154.74.  The chart is looking very bearish with low relative volume on the rebound yesterday.

Red arrows indicate algorithmic sell and Green arrows are a buy.  Green dashed lines are profitable historical trade patterns.


Date: Dec. 2, 2013

Seignal: SELL

New algorithmic SELL signal generated on RE  ( Everest Re Group Ltd. – NYSE ).

After Goldman cut their rating on RE with a bearish outlook across the reinsurance industry, stock swooned from Friday’s close of 152.60 to a low of 147.30 this morning, currently trading at $153.30-.50 range.   Stock currently trying to rally back, with key resistance at $154.71 – will short from this level if stock reaches this price today.

 

RE Daily – click to enlarge