Five Stocks Throwing a Good Punch Today

Courtesy of The PPT algorithm, here are the most current top five readings from my “12631 RELATIVE STRENGTH” custom-made screen, identifying which stocks are exuding some of the best performances to the market at-large at any given moment.

I look for stocks whose Daily PPT Hybrid Score surges, while the Weekly Hybrid has been negative over the past week. This can often yield stocks which are emerging from consolidations.

Members can click here to view and save the screen.

Sorted for at least 500,000 shares of daily average volume to ensure liquidity.

Please click on image to enlarge.

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Aside from my bond short, I am basically getting chopped up this morning. My shorts are stubbornly resilient, and my longs are slippery.

To my eye, small caps are still the best selling point bears have here, with their notable underperformance of late. On the small cap IWM ETF, a move over $115.50 today would likely see me closing out some shorts.

All of this is happening in front of the big, bad BABA IPO coming from China. To get us in the spirit, a vicious hit piece came out on VNET this morning, sending the stock down 20-25%.

Apart from that, REITs are coming in today, giving me a bit more conviction in the short bond trade, given how rate-sensitive the sector is.

What are you trading this morning?

After a few failed bounces, Treasuries are pushing lower again this morning. It is still too early for me to declare that the great bond rally of 2014 is over, but for over two weeks now I have been short Treasuries again via long TBT TMV instruments.

As far as where we go from here, the TLT (straight-up ETF for Treasuries) daily chart suggests this moment is a big one, with the 50-day moving average (darker blue line) likely needing to hold to avoid a test of the lower Bollinger Band.

If, in fact, this is the end of the bond rally, then the downside momentum should build from here as bonds become and stay oversold for quite some time.

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The following is just a small excerpt from my latest Weekly Strategy Session (please click on that hyperlink for details about trying it out) which I published for members and 12631 subscribers this past Sunday.

Here are some ideas with vulnerable charts that I would consider swing trading on the SHORT side ONLY ON WEAKNESS in a broad market which accelerates to the downside. Short-selling includes unlimited risk, since stocks can rise indefinitely, or at least much longer and much higher than seems reasonable. Thus, I strongly encourage you to define your risk beforehand via a concrete buy-cover protective stop-loss, in the event the trade goes against you. Also, please be sure to check earnings dates for any and all of your holdings.   

1. AXP 
2. DAL 
3. EWG
4. EWI
5. F
6. GM

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Here are some actionable short ideas on this list, especially if the market sees another day of weakness.

Courtesy of The PPT algorithm, here are some very aggressive ideas for short trades headed into Friday 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.

Please click on image to enlarge 

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After Tuesday’s price action, there are several short ideas I could list. But Cheesecake Factory, Inc., seems to stand out as being most vulnerable on any further weakness.

On the daily chart, below, not he potential major topping out pattern (purple lines, after a prior mult-year uptrend).

The recent bounce is still below a 200-day moving average which is declining, leading me to believe it is simply setting up the next leg down. I would consider a short back below $45.

On the long side, keep an eye on the precious metals and miners for quick upside bounces, given the late-day surges we saw there on Tuesday.

Drop me your top tickers overnight.

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