Still Not Such a Happy Meal

Even though McDonald’s is green after earnings, the technicals remain suspect. On the daily chart, first below, note the declining 50 and 200-day moving averages, while price struggles to find footing. I am back to looking at this as a short setup if price breaches $95.

Also note Herbalife’s weekly chart, second below, one we have observed before. The stock went roundtrip and even overshot prior highs from 2012. Now, however, overhead supply is kicking in, among other things, and the news is likely combining with this technical circumstance to sustain selling pressure.

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That is most of my book, and has been for a while now, inside 12631. I have a few other positions on, such as WYNN short. But, for the most part, I am focused on those parts of the market where I can pick up alpha if the very extended, popular (and crowded) momentum plays unwind further.

The miners have been great for me, playing NUGT, while the metals had been laggards.

This morning, though, the metals are showing some heart, with both silver and gold threatening inverse head and shoulders bottom daily chart upside breakouts which I have profiled for your previously.

Keep an eye on the coffee ETN, JO, which I am still long, to see if it recaptures $23 to the upside after some recent pulling back.

Back with some more ideas in a bit.

Drop me your top morning tickers.

Here is that updated monthly chart for Big Blue, IBM, after earnings. Note that $172 remains critical, multi-year downside support to observe. While it is true the consolidation since 2011 has been a sloppy and lagging, that support level has held thus far. Watch it.

Some long ideas to watch on strength: CROX NM NYNY TK, and the three semis listed last night: KLAC LRCX ONNN.

Short ideas: NKE UA

What is at the top of your watchlist this morning?

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Here are some actionable short ideas on this list, especially if the market follow-through lower with tonight’s futures.

Courtesy of The PPT algorithm, here are some very aggressive ideas for short trades headed into Tuesday. If you are not comfortable shorting (especially in a bull market), there is nothing wrong with taking a pass. Keep those cover-stops in place.

Nonetheless, a good chunk of readers are always looking for short ideas.

Members of The PPT can click here to view and save this “Titanic” Screen, as I named it when I created it a few years back. The screen isolates stocks vulnerable to further weakness.

I have given long ideas in my video recaps and prior posts, and here are some short ones.

Please click on image to enlarge 

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Futures are getting hit tonight, as you can see below courtesy of Bloomberg.

However, we saw this script throughout 2013, and bulls never seemed fazed. The pertinent issue, of course, is whether a true correction ensues. We know that retail stocks have been getting whacked by consumer standouts like COST SBUX also start to suffer some profit-taking after monstrous multi-quarter performances.

I am still short WYNN, looking for more downside there as other consumer-related names presumably will get hit as well.

On the long side, keep an eye on semiconductor stocks: KLAC LRCX ONNN for further strength out of intriguing technical daily chart setups.

Drop me your top tickers overnight.

We are staying on top of this market inside our 12631 Trading Service, which @RaginCajun and I direct here at iBankCoin.

If you enjoy my work, then I’d encourage you to click on this 12631 hyperlink for more details about joining. 

Enjoy tonight’s video, and enjoy your evening. 

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