If the market begins to roll over take a look at Research In Motion Limited (USA) [[RIMM]] . The stock is trading right back to former support, which has now become resistance. Your stop will be around $67.55, anything above that and you want to be out of the trade.
Previous notable call.
6mo Chart:
Technically, the market looks terrible. Looking at the charts, the right shoulder is just about ready to dive off a cliff. However, we may see some buying today after a week of blood, but as for me, I will sit this one out on the buy side.
In my opinion we will see a lot of stocks retrace back to the area of support– now resistance, this will be the right time to short a few names.
The inverse ETFs are all looking great with signs of bottoming in the charts. Part of me just wants to load up on a few and call it a day, but I won’t–just yet.
I will use today’s strength to get out of a few names on the long side, and will raise my cash position significantly. By the looks of things, we have a big move coming, and it’s not up. It’s going to take some good news to get this market moving.
Trade accordingly.
Here’s a look at a few Inverse ETFÂ charts: SMN, TZA, FXP, SRS, QID, DUG, FAZ, ERY, & BGZ.
Comments »Looking for a few short setups? Look no further than coal (click on symbol to bring up chart): ACI, ANR, BTU, BUCY, CLF, MEE, & PCX
As far as the overall market, CA has a great post on specific sectors as well as the indices, just about everything is ready to breakdown.
Comments »As much as I want to get long a few names here for a bounce here, I can’t. The leadership is gone, and the only thing holding the market up is the 200 day Moving average. A break below that will send the market into a selling frenzy, so watch your longs.
The only short exposure I have at the moment is [[FAZ]] , but the way things are shapping up, I expect that to change. On the long side today, Level 3 Communications, Inc. [[LVLT]] is acting well, this is one that I own and I’m looking for a breakout soon. Fifth Third Bancorp [[FITB]] is another one I own and is sitting on the 50 & 200 day MA, I’m looking for a bounce here or I’m cutting it loose.
I sold out of [[CNXT]] this morning and took a loss on the position, I plan on cutting a few more, but will wait for the end of trading before making any decisions.
Note: all buys and sells can be found in the community notes inside The PPT.
Comments »The way some of the charts are setting up does not look good for the overall market. Oil & Gas looks like it may completely roll over, and has been a great spot for shorting the last few weeks. This week looks no different as I’m still finding good setups in the oil service space.
Baker Hughes Incorporated [[BHI]]
BJ Services Company [[BJS]]
Tech also looks weak with a few of my favorites looking to breakdown.
Google Inc. [[GOOG]]
Research In Motion Limited (USA) [[RIMM]]
Now I’m not ready to launch a full short attack after a week of blood, but it is worth noting that the leaders are rolling over. I’m actually looking for a bounce here with the test of the 200 day moving average, but if that fails, the stocks above should provide some nice coin on the short side.
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