Food For Thought
While there
continues to be a decent list of names setting up and breaking out, I
am starting to believe that the markets are now setting themselves up for,
at best, a
trading range at these levels. I believe this because the names that are acting
best are mostly small-cap that do not have a huge influence on the market.
Most of the big
names are still acting suspect.
Â
The other point I
need to make is that the Technology shorts I have put out in my report continue
to come under pressure. This
tells me that Tech will continue to not be the place to go.
This is also
evidenced by the fact that while the Nasdaq is up nicely
from its lows, the
Nasdaq
Computer and
Telcom
indexes are back
at their
lows. Food
for thought!
(
DFXI |
Quote |
Chart |
News |
PowerRating) breaks out on strong volume.
(
SRDX |
Quote |
Chart |
News |
PowerRating) bust out of a high base.
(
CPRT |
Quote |
Chart |
News |
PowerRating) quietly breaks out on monstrous turnover.
(
GENZ |
Quote |
Chart |
News |
PowerRating) looks to be setting up in the strong
Biotech group.
On the short side,
remember my
(
CHKP |
Quote |
Chart |
News |
PowerRating)
short call. It
is now rolling over badly. Looks
to be shortable again in the mid 50s.
(
HOTT |
Quote |
Chart |
News |
PowerRating)
looks like potential
to mid to low 20s.
I would also look at the Restaurant
group. I
would be certainly selling any holdings as the group has topped out.
Stocks like
(
CEC |
Quote |
Chart |
News |
PowerRating) and
(
EAT |
Quote |
Chart |
News |
PowerRating) look shortable on any rallies.
Lastly, I want to thank Michelle and Ryan of TradingMarkets.com for their help with the Phoenix
workshop. It
was also a pleasure to be working with a class act like Loren Fleckenstein.
Too bad no one
could do anything about the 110–degrees–in–the–shade
weather.