The Daily Breakdown: 14 Short Setups from IBD 100

With the markets in a clear downtrend, I want to continue focusing on short setups. These are all from the IBD 100 list. While O’Neil advocates shorting a stock after several unsuccessful attempts to overtake the 50 day moving average, most of these setups have failed only one time at the 50 day. A conservative way to play these would be to wait for subsequent tests, and then get short to catch the rollover.

My sense is that most of these will make a profitable move down before re-testing the 50 day.

[[PCLN]] #2 from the Investor’s Business Daily 100.

[[CMG]] #6

[[LIFC]] #20

[[MA]] #21

[[WDC]] #37

[[AGU]] #38

[[LKQX]] #40

[[OTEX]] #44

[[ABAX]] #47

[[WFR]] #63

[[CEDC]] #58

[[SXE]] #59

[[FLIR]] #61

[[STRA]] #97

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