Here’s what I’m looking to short today
The Nasdaq may very well be starting
to top out here in the very short term, so its a good idea to start
scanning our radar for stocks that have been underperforming overthe last week
or so. Here are three stocks that we will be looking for short sell
opportunities on in our Live Trading Room on Tuesday.
Ever since its big run last Wednesday,
(
BRCM |
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Chart |
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PowerRating) has done nothing but form a
series of lower highs and form solid support just above the 45.00 price level.
If that 45 support level breaks early in the day on significant volume, BRCM
could be in big trouble. In fact, there is a reasonable probability that it
could fall almost as quickly as it shot up should that key support level fail.
Of course, as long as the stock remains above 45, the risk of a move higher is
far to great to enter a short position–make it fail first.
On Monday, we were able to grab a quick $1.15/share profit on
(
SHLD |
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PowerRating)
through a early morning short sell. We’ll be looking to do the same on Tuesday
morning, especially if we see some low volume moves higher into the upper end of
SHLD’s downtrend channel.
(
EMC |
Quote |
Chart |
News |
PowerRating) has been in a downtrend for the past five trading days, despite the
overall strength of the Nasdaq. We will be watching very closely for chances to
short sell this stock at 13.65 or higher on Tuesday, with a target of 13.10 a
real possibility if the Nasdaq gets a significant pullback.
Of course, none of this matters if the Nasdaq is strong on Tuesday, in which
case momentum to the upside will likely rule the day.
Andy Swan
Andy Swan created and
co-founded DaytradeTeam.com five years ago on a principle of empowering
individual stock and options traders with the techniques and analysis methods
typically reserved for elite professionals. His expertise in technical analysis
and commitment to educating members earned DaytradeTeam a top-ranking among
advisory services for several years.