Wednesday, April 9, 2008

Trouble for Transports, A Few Shorts

I am starting off with the charts of two "99/99" stocks that I am watching very closely, WSCI and UFPT. Both need to pullback, but I would be willing to take a shot near the 9 and 20 day moving averages. One word of caution: if the market starts selling off harder, these may pullback in a very violent manner due to their low floats. They are not for the faint of heart, and I would not be buying anywhere near where they are today. Please be careful.

WSCI, UFPT
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

Most of the longs I posted last night held up well today so I encourage you to take a look at them if you need ideas on the long side. I would also add GU to the list, as it has rested a bit and is one to watch - I would like to see a bit more rest myself. As I wrote earlier, support at the 50 day moving average for the major indexes must hold for me to get interested in going long.

I noticed some major problems for the trucking stocks that broke out last week, and based on the charts below, I would have to say that this breakout has failed, at least as of now. This does not bode well for the overall market.

JBHT, LSTR
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

Most of the shorts I posted the past few nights are still in lower-risk areas and worth watching. I am putting a few more up tonight to add to the watchlist. I will not get super aggressive on this side of the market until we break below the 50 day moving averages.

LEH, GS, CME, NMX
MR, CMG
HOLX, WBD
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

Hopefully tomorrow we'll get some movement, either below support or a bullish reversal right at support. Good luck.

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