No Longs Right Now, Some Shorts

Here's the VIX and the T2108 indicator from Telechart. Both of these indicate we are due to pullback at some point in the near future, and today's action may be the start.

VIXT2108

Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

Here are some charts I started positions in today. The stops are close by in case the market shows strength tomorrow and breaks out past resistance. Based on several things I see, I believe we are more likely to pullback before testing this resistance again.

SMN, FXPFWLT

DECK

BIDU

Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

Solar stocks, which were starting to ramp up, had a very tough day today with some big reversals.

SPWR, STP, FSLR, JASOCharts from Telechart2007, Courtesy of Worden Brothers, Inc.

Here are some shorts to look at for the next few days. Most of these are showing similar patterns of rallying up to previous support levels which have now become overhead resistance. Be careful on entries here and until the market is clearly more bearish, you may want to take profits quickly.

MR, CMED, CPLA, GS

FSTR, JEC, IR, EPIQ

CMG, KAMN, HOLX, AMZN

Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

I am not posting any long charts tonight because I don't think entering new longs is wise at this point. Let me be clear that I am not totally giving up on this rally or abandoning those stocks - with the markets being overbought, I think it is just best to wait for some of the stocks that have been winners the past week or so to pullback and get safer entries. As I mentioned earlier, how we pullback will tell me a lot about where we're headed. Good luck tomorrow.

Tags: VIX, T2108, FWLT, BIDU, DECK, SMN, FXP, SPWR, STP, FSLR, JASO, MR, CMED, CPLA, GS, FSTR, JEC, IR, EPIQ, CMG, KAMN, HOLX, AMZN