This downleg in the indexes has produced a 5% decline since I talked about the averages bumping up against their 50 dma in their downtrend. The stock charts were all breaking down past week culminating into what we saw Friday. What will Monday bring? How the heck do I know. I do know this, there are fresh shorts still out there and the shorts I currently own and the others I have mentioned have produced some nice profits. I have taken gains (usually cover 1/2 of position no matter what) with some of my shorts being down (or up however you look at it) 25% (CMC, etc...). Still a lot of my shorts charts are broken and if the indexes eventually bounce on low turnover and the individual charts look weak still yet another shorting opportunity may appear. The VIX is jumping, finally, and that helps indicate that fear is building. So my best guess is there will not be blood on the street Monday since a lot of people I talk to suggest it could happen. If it does I would be real happy and would probably cover almost all of my shorts expecting a powerful rebound. But I dont think I have to worry.
Best swing shorts for Monday: GOOG PVN NETL XOM CDWC CORS MTG SPLS ELOS EEEE.
More shorts: NVR ANF KBH URBN OXY PTEN ASCA VLO NICK RMCF USLM GP HCBK STR SU BWLD CDIS ECA HAL NFX COP AEOS MIK ZRAN BPT TDY BFAM BHI BBD SAP YRK BR MAR PPP DSPG.
Swing position Long ideas: PRSC breaking out of a base on top of a base pattern that started in January 2005. It is a medical stock and you know they do the best in bear markets.
Don't believe me well here are all the interesting charts that caught my attention Friday: DNA LNCR TKTX ABT BMY HYTM. The last two I have mentioned before. If TKTX could either base for a week or pullback on low volume to 27.75 I would love to take a position in this beautiful chart. Today's surge in volume was HUGE, BOP is green, and the price action shows excellent characteristics since March 2004.
ALOHA and great luck this upcoming week.
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