Sears (SHLD) Reports Tomorrow

I was so distracted with today’s bull market that I forgot to buy Puts in SHLD. That’s right, Puts. The CPI and PPI data said the economy slowed down. I’m sure that will hit Sears. If WalMart posts a lost for the first time in forever, then why should I believe Sears will do better.

This Cramerite stock has a good chance to sell off, and a lot of people may have gotten caught in a bull trap- Call buying was very heavy today in SHLD. Well, I guess tomorrow morning I’ll find out if it was a good thing that I was distracted.

• Massive buying everywhere, yet I still managed to short some stocks (say what?!)
• I covered my day trade short in MLS too early. The so-called “support” at 13.55 was weak; I should have noticed the weakness that by looking at the 5-minute chart which basically says “no support anywhere.” Anyway, I guess it’s good to stick w/ clearing day trades an hour or so before the close.
• Major short squeeze going on. The best I’ve seen today- Empire Resources (ERS). Stock is still heavily shorted.
• Ilumnia (ILMN) is searching for support. Best guess is $31.50.
  
• The SOX index is on a mad dash to fill in the gap to 460. Clearly the semiconductors own August. Longs will feel nervous between 450-460.
  
• I believe the bears are hurt real bad… therefore, any pullback in market will be marked as profit taking. Go ahead and add to your longs on profit taking.
  
• Hansens (HANS) broke through $30 making me look bad.
  
• Netlogic (NETL) will fall hard once profit taking hits the SOX. This stock is riding the tech wave. Support at $26.
  
• NVEC is holding steady above $20… wait for next breakout.
• Let the race begin… Palm (PALM) versus Research in Motion (RIMM).
• An unusual paradox: Oil is down, energy stocks are up.
  
• Nobody has noticed that gold is slipping.
• Market kicked my butt today.
  

Just covered MLS @ 13.60. Taking advantage of another bar of panic sellers. Support is 13.55, which is too strong with only 1 hour left to trade.

ALSK tapped RSI 69. Let’s see if there’s enough momentum to carry through. Next resistance at 13.20.

CTCM made the IBD #4, but this could be good or bad. Considering the weakness in the stock, I’m not picking up any shares until bottom confirmed (stock has rocketed quite fast). Actually, RSI has finally dipped below 70 which tells me the momentum is over (I’d short here, for example, look at ILMN which tanked after failing to breakout… the start point was when RSI fell below 70). Nevertheless, this IPO stock has good fundamentals (ie, raised guidance). Keep it on the radar, but don’t buy now.

The Dow better haul back over 11290 or else the longs who bought today will find themselves down on a up day.

Here’s one from FLY. I bolded the ones I like (good volume and other stuff)…

CNR +21% reported earnings
TOMO +16.2% *Cramer said sell
GGR +15.4%
BIVN +12.8%
ANF +12.4% reported earnings
LEV +11%
CHRS +10.4%
MRVL +10% *
RACK +10% * Cramer said sell
CHCI +9.7%
BRCM +9.6% *ouch.
BTUI +9.5%
SILC +9.5%
SIRF +9.3% *
OPTC +9% *
TRID +8.8% *
SLNK +8.9%
KONG +8.7%
CNXT +8.1%
ERS +7.5% *

I’d like to add:

PEIX
TIE
PALM
GRMN