Bearish Butterfly Setup On This Stock
The
theme over the past week in this column has been the resistance in
the Nasdaq on the weekly chart and potential short plays off of that. Last week
we looked at Symantec
(
SYMC |
Quote |
Chart |
News |
PowerRating). I’ve
included a chart below that lists my first objective.
I’m adding another chart to
either consider shorting (or if you own it as a swing trade on a daily time
frame…to sell it). That stock is Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating).
Below you can see that it has completed a Bearish Butterfly pattern into
resistance. I’m currently short with a stop above this Fibonacci resistance
zone.
These two stocks line up well
with the condition of the Nasdaq and the potential for a 10%-20% corrective
decline. Now, one area that I’m very interested in on the long side are the
Homebuilders. Stocks like: Lennar
(
LEN |
Quote |
Chart |
News |
PowerRating),
Hovnanian
(
HOV |
Quote |
Chart |
News |
PowerRating), or
Beazer
(
BZH |
Quote |
Chart |
News |
PowerRating). These stocks have completed
an ABC corrective decline into support zones. Now, I’m just waiting for the
triggers to go long. We’ll dig deeper into these on Thursday.
Have a great night!
Derrik Hobbs
dhobbs@symfinancial.com