Cajun Buy: SII

The Cajun is into oil, especially in the month of August, mainly because of things like this. Going through a few screens this morning, I noticed the beautiful chart in Smith International, Inc. [[SII]] , so what did I do? I took a position in the name around 26.50 (noted in The PPT).

What I like about this chart is the moving averages. Notice, on the chart below, how they all line up creating huge support for the stock. Normally, when you see a pattern like this it creates an explosive move, thus the buy in Smith International, Inc. [[SII]]

Note: In the oil patch, I also like WTI, IO, REXX, GMXR, WRES, HAL, SD, & PDS

First off, before I get into my post, I think the market still has legs and it’s very possible our next target may be 10,000 on the DOW. However, there are still short setups worth pointing out to all the angry bears on this site.

Today we received two negative reports from solar, JA Solar Holdings Co., Ltd. (ADR) [[JASO]] & LDK Solar Co., Ltd. [[LDK]] . On way we can possibly play this is through First Solar, Inc. [[FSLR]] , take a look at this bearish beauty:

The way to play this: Look for weakness across solar along with overall market. If you do indeed see weakness, look to short FSLR with a stop right above the 200 day moving average. This trade is not for the faint of heart, the group can catch fire at any point. But, with the risk/reward setup, it could pay off handsomely.

I will attempt to play the biotech lotto again, I bought [[CTIC]] & [[DVAX]] .

I also bought Sterling Financial Corporation [[STSA]] on the back of The one they call The Fly.

Not much else going on other than the shorts getting flame brolied again. However, Shanda Interactive Entertainment Ltd ADR [[SNDA]] proved to be a perfect spot to short the other day.

CNBC’s Jim Cramer mentioned tonight that we should be buying the dip in the moble internet plays. He actually created an index of 21 stocks, called The Mobile Internet Index. The list is as follows:

1. Google Inc. [[GOOG]]
2. Apple Inc. [[AAPL]]
3. Research In Motion Limited (USA) [[RIMM]]
4. Starent Networks Corp. [[STAR]]
5. Cisco Systems, Inc. [[CSCO]]
6. Ciena Corporation [[CIEN]]
7. Tellabs, Inc. [[TLAB]]
8. TEKELEC [[TKLC]]
9. CommScope, Inc. [[CTV]]
10. Shanda Interactive Entertainment Ltd ADR [[SNDA]]
11. ADC Telecommunications [[ADCT]]
12. Palm, Inc. [[PALM]]
13. QUALCOMM, Inc. [[QCOM]]
14. Broadcom Corporation [[BRCM]]
15. Cypress Semiconductor Corporation [[CY]]
16. ON Semiconductor Corp. [[ONNN]]
17. NetLogic Microsystems, Inc. [[NETL]]
18. Xilinx, Inc. [[XLNX]]
19. Tessera Technologies, Inc. [[TSRA]]
20. Skyworks Solutions, Inc. [[SWKS]]
21. RF Micro Devices, Inc. [[RFMD]]

Note I: Watch for  action in tech tomorrow with the Mobil Internet Index.

Note II: Watch for action in solar with LDK & JASO reporting. Also, Applied Materials, Inc. [[AMAT]] reported a good number with a strong sales coming from its solar division.

Note III: Watch for action in healthcare/Biotech. Bullish price target raised for Human Genome Sciences [[HGSI]] , [[JAZZ]] on fire after the bell, and Amgen, Inc. [[AMGN]] made a pretty nice move today in a down market.

Freeport-McMoRan Copper & Gold Inc. Freeport-McMoRan Copper & Gold Inc. [[FCX]] Breaking down:

Reliance Steel & Aluminum Reliance Steel & Aluminum [[RS]] Nice little bear flag right below 100 day:

The Buckle, Inc. [[BKE]] Breaking down below 200 day:

And, IntercontinentalExchange, Inc. [[ICE]] will it finally breakdown?

Take a look at Shanda Interactive Entertainment Ltd ADR [[SNDA]] , this is exactly what you want to look for when looking to short a stock.

9mo chart: Retrace right back to support, now resistance:

This is about as good as an entry as you will get:

I will be looking to short SNDA on market weakness, and will place my stop right above the bottom yellow trendline.

Note: Don’t forget the bear flag in IntercontinentalExchange, Inc. [[ICE]] , it is still valid.