Leadership is Gone

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.

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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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Short setups are plentiful at the moment, there are so many taking place it has me worried about where we are headed in the next few weeks. There’s no shortage in the oil & gas sector, just about everywhere you look you will find a breakdown. Here are a few that have peaked my interest:

Hess Corp. [[HES]]

XTO Energy Inc. [[XTO]]

PetroQuest Energy, Inc. [[PQ]]

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We were very close to breaking out yesterday, but the market couldn’t quite pull it together. This morning we get a nice slice right through the 50 day on the S&P as everyone sells ahead of the holiday.

I almost wish the market would shit the shower just to prove Dennis Kneale wrong. That guy is an embarrassment to CNBC, and should be fired immediately. What kind of mickey mouse operation are they running over there? I honestly don’t even tune in anymore.

As far the market, I am net long and don’t see myself doing much trading for the rest of the week. This kind of low volume holiday action can chop you to pieces. I have a few core positions that I intend to hold, and if I trade anything new, I will limit myself to intraday only.

Here’s a current look at the S&P 500:

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The more I look for long setups, the more I find short setups. With the holiday weekend upon us, it will be interesting to what develops in the next few days. Be on guard for market weakness, and look to short this beautiful bear flag in Research In Motion Limited (USA) [[RIMM]].

Here’s a bunch of great short setups by the Stewie and more great setups from Mac.

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Tech:

Google Inc. [[GOOG]] king of the internets

Level 3 Communications, Inc. [[LVLT]] play on bandwidth

Sigma Designs, Inc. [[SIGM]] Play on Blu-ray & other cool devices

[[CNXT]] will be in it as long as the charts holds up.

Financials:

Huntington Bancshares Incorporated [[HBAN]]

Fifth Third Bancorp [[FITB]]

Both are swing trades and I don’t anticipate being in them more than a few weeks

[[FAZ]] tipple inverse short the financials

Energy:

[[DXO]] Double Long Crude

W&T Offshore, Inc. W&T Offshore, Inc. [[WTI]] A local company that I love

Stone Energy Corporation [[SGY]] Deepwater Pyreneer Prospect, huge potential.

Solar:

JA Solar Holdings Co., Ltd. (ADR) [[JASO]]

[[SPWRA]]

Consumer/Spec:

[[IBGH]] Drank Energy

Biotech:

[[CTIC]] I’m constantly in & out of this name. I currently hold shares.

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