Tuesday, May 10, 2011

Bulls Back in Control - For How Long, Only the Dollar Knows

I am still carrying one short (DECK) but after today's performance, the bulls deserves respect.   I did not think they would get past Friday's highs on the Nasdaq after the terrible intraday action last Thursday and Friday, but I was wrong.  In hindsight, I underestimated the potential bounce in oil, gold, and silver, which in my opinion has been the impetus for the market to rally the past two days.   Those areas still look like dead-cat bounces to me and with the dollar not giving back much of its gains from last week, I think the market could fall back again as soon as these three areas start falling again.  

Although I maintain a relatively long list of short candidates right now (BEXP, BIDU, CHK, LVS, NOV, OPEN, TDSC, SOHU...), I am going to play the long side as setups make themselves available.   Here are some I think are worth watching for tomorrow...

Charts from Telechart, Courtesy of Worden Brothers, Inc.

A few earnings names to watch tomorrow include ASYS and PKT to the upside and REE/AVL to the downside as MCP reported an awful number.   Good luck Wednesday.

1 comment:

Anonymous said...

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