I am still not looking to short until at least next week, what with the snapback rally/holiday trading we have seen.
However, into the bell it is worth noting the General Motors’ weakness today, once again.
A long-term top is very much in play. And I am going to look here into June for another short, especially under $34.
See you after the bell for my video market recap.
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All of the beaten-down stocks in the dumpster, including FEYE LNKD SPLK WDAY YELP, are in play on the long side as savvy bears (in these names, at least, dating back several months) are on a beach somewhere right about now.
I still think these charts have serious issues and that growth stocks have peaked for this bull market.
However, for quick trades they are very much in play on the long side.
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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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The 200-day moving average for the small cap ETF is still a fairly pronounced dividing line between rallies which can stick and further choppy, sideways action, with bulls and bears alternating days of holding the initiative.
If bulls can soundly reclaim the 200-day (yellow line), a run up to the 50-day into next weeks seems to make sense (darker blue line). And rejection down below $109 again likely brings about a washout of recent buyers.
It is also worth remembering that we have a collapsing VIX with the Russell still below its 200-day moving average, something you almost never see.
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LinkedIn is another long candidate for a badly beaten-down snapback rally.
On the hourly chart, below, you can see the stock clearing month-long resistance after making a series of higher lows. As long as this breakout holds, a move into the $160’s is within shot.
The overall picture, though, is of a damaged former leader, which means a firm stop on weakness below the breakout point is correct to avoid getting swept up in another leg lower.
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In the event we see a further rally the rest of this week, here are some actionable long ideas which are heavily-shorted.
Please click the screen shot below for a larger view of my “12631 FINISH HIM! SHORT KILLER SCREEN” inside The PPT. Obviously these stocks are going to have the highest percentage of shorts and, according to the algorithm, are set up well to squeeze further.
If this bull goes buck wild, this is a great idea screen.
Members can click here to view and save it.
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