Thursday, March 27, 2008

Lots of Shorts, A Few Longs

Here are a few longs I am going to still keep an eye on. I think the bulls must make a stand tomorrow or things could get much worse with this "pullback". As IBD states tonight, a distribution day today (the fourth day of the rally attempt) is right on the edge of trouble:

"When professional selling occurs within three days of a follow-through, that's usually a death knell for a new rally. In this case, the distribution occurred four days later.

That's just out of the biggest danger zone, but still a negative sign. In a healthy rally, the broad market indexes will eventually add more gains in heavier volume after a follow-through.


GU, LSTR, TECUA, SKIL
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

These homebuilders are pulling back nicely but I am still torn as whether to trust the charts or look at the facts with these stocks. It doesn't really matter if the market doesn't cooperate soon.

MTH, PHM, HOV, LEN
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

Here are the shorts I am watching if we break down further here. I tried to put them in order of preference from top to bottom. I don't know if I would load up here yet, but we're getting close to that point it seems. Feel free to ask questions about the charts if you have any.

CMI, AMZN, FWLT, NDAQ
DECK, ZION, AAPL, JASO
WFR, WBD, GS, KAMN
AG, TNH, FSTR, UACharts from Telechart2007, Courtesy of Worden Brothers, Inc.

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