Break Down!
We were open to some weakness in here, but today's action was a bit more than I had expected. It's probably good news for the Bulls, as it ought to generate some considerable pessimism. Regardless, our holdings are doing well.
DOW: The Dow is probably headed for 10475 or lower.
S&P500: The S&P broke a trend line (that I had drawn earlier on another chart) this morning which generated some more serious selling. If we don't rally by Friday, the weekly turns down.
NDX: The NDX looks like it may have just formed a rather large Double Top. I don't like that we closed below that neck line.
QQQQ: There's a gap down at 38.39 that we may be in the process of filling.
HUI: The Miners are consolidating Bullishly.
BKX: The Banks treid, but failed. They look a bit iffy in here.
DJUSHB: The homebuilders look like they want to break down, but I suspect that if the market will hold together, we'll get a good bounce. I'll be looking for set ups to short if we get it.
SMH: The Semi's actually look pretty constructive to me.
XLE: Everyone knows that "Energy is the place to be." I smell a break in Oil and a shellacking in this sector to punish the late-comers.
CLX: Clorox is holding its own in a rotten market.
ANF: Abercrombie is currently trading at 56.74 in after hours trading. If you are so inclined, you can cover tonight. We're going to see if we can't get a real panic going tomorrow. We're lowering our target and putting our stop at the old target. If the stock can recover 2 more points tonight, then we probaby don't want to be short anyway.
SOV: Stopped out of Sovereign, but we still like it.
EYET: Eyetech is too strong and hard to chase.
ADTN: Adtran still looks good if it will break up.
HUBG: Hub Group broke up, so let's give it a shot. The market is iffy, but this one is strong.
TOL: I suspect that Toll Brothers is going to try to fill that gap above. I'm looking for a pattern to short if it does.
WNC: Wabash National is giving us a low-risk entry point, so we probably ought to take it. If the market comes on, it ought to bring Wabash with it.
MOBE: Mobility is just too thin for the track record, but it still looks good. Remember, it may be tough to move in and out of this one in size. Use care.
Summary:
Things look pretty bad, but we know that that's about the best time to do some buying. We are certainly aware that the market can tank in here, but there's also a decent chance that we'll bounce for expiration. If that's the case, we ought to see if we can't capture a little extra profit on such a happenstance.
Be Well, and Trade Smarter Than the Average Bear!
-The ChartSmarts Team
Current Positions:
Long CLX at 55.74, stop at 56.87
Short 50% ANF at 72.49, stop at 58.89. Cover at 55.10
Watch List :
XLE: Short on a limit of 48.47, place the stop at 49.43
ADTN: Buy on a print of 25.98, stop at 25.46. Ignore the 30 minute rule on the stop.
HUBG: Buy on a print of 30.77, stop at 30.15
WNC: Buy on a limit of 21.50, atop at 20.74
Changes in Current Positions:
Move the stop down on ANF to 58.89. Target is now 55.10
We are out of SOV at breakeven.
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