Wednesday, June 18, 2008

Not Many Longs to Be Found, So Even If We Bounce, Where Would We Go?

I need a little break to get my mind right from trading today so I am going to just make some comments on the stocks I am watching for tomorrow rather than put up a ton of charts.

For the longs, I don't see many that are buyable right now and to be honest, why would you want to buy right now? The bad news to go along with this is that I don't see many setting up (besides commodity areas, and even here most are very extended now) so even if we had a follow-through day, I don't know if it would amount to much. If the Nasdaq breaks its recent lows, the rally attempt is dead regardless.

  • SQNM, only on a pullback to the $13.20 area
  • WHT, energy stock that hasn't broken out yet, if it gets above $5.25
  • ENER, only on a pullback to the $70 area
  • DGLY, seems to be forming possible descending triangle, but I would get out below $8.50
  • TSYS, forming little flag pattern here.
  • STEC, bounced off support at $11 today, but I would still be hesitant
Here are the shorts I am watching. This is still the area to focus on although I haven't had much success here and it is still tough. Being down two straight days, a short-covering bounce is a possibility so be careful.
  • FCSX, one I will focusing on, could be breaking down here, higher volume today.
  • CRDN, below $38 is a possibility
  • CDS, would be safer it is gets a little higher
  • ESEA, forming bear flag, shipping looked weak today
  • CFSG, this is one I will be focusing on also, although it has been down four of five days
  • YTEC, forming triangle pattern
  • UFPT, below $10, I might take a chance - I am still mad about passing on WSCI(similar stock)
  • SMTS, negative reaction to what looked like good earnings today, stop above $20
  • JST, has rallied weakly to the 50 day moving average.
I want to also officially thank Scottrade for not having any shares available to short MF last week. I posted about this stock twice last week here and here. Who knows, even if I had gotten some, I may have been stopped out by now, but it was down 40% today. Has anyone else had problems with Scottrade finding shares to borrow? Maybe it's not their problem, it's just the stock couldn't be borrowed anywhere. It's frustrating though to see it drop so much and not be on board.

Best of luck Thursday. If I had to predict, I think we bounce a bit tomorrow and maybe head lower Friday, but that is simply a guess. Who knows with options? Be careful out there.


1option said...

I just want to say thanks for your great posts! I read your blog everyday and pay much more attention to it when doing so than other blogs. You have great insight into the markets and I hope you don't ever stop!!

Mac said...

Thanks for the kind words. It is nice to know that you enjoy the insights. I don't know how insightful they are sometimes, but I'll do the best I can. Thanks again.