No predictions needed! Here are 6 stocks, both long and short
Some
days you just find yourself on the wrong side of the playing field. The bashing
of semiconductor stocks over the last three days is par for the course in the
month of September. Sharks lurk in waters not suspected. What in the world does
that mean? It means that holders are quick to take profits in leading
instruments in stocks like
(
MRVL |
Quote |
Chart |
News |
PowerRating), a market leader. It is merely profit taking
place and long-term players ought not panic. It’s the short-term negative
circumstances that harm performance if the action taken is wrong. So I have been
wrong in my actions for the last few days betting on a bounce in the
semiconductor space. But I am back today earlier then usually to try and get an
edge as the new trading session gets set to happen. I played MRVL all the way
down and finally sold off the stock at the close and will be back in it if the
chance is there. It is a great stock to trade especially getting on the right
side. There are several other leading semiconductor stocks that have come in
that are attractive and they are all on the focus list. Today I will get into
longs and shorts. How can you not participate on both sides of the coin in this
current market space? The current market space is neutral. The market is stuck
in a range. Making money in this market is easier said then done. Lets examine a
few stocks that provide the chance to do just that. The following stocks are
performing well long and short.
Procter & Gamble
(
PG |
Quote |
Chart |
News |
PowerRating) 56.69
PG is in great
shape. The chart tells that tale. Loud and clear. I see it and am ready to
pounce on the stock if it can cross 57.40 on a close. A market rally and it is
right there. The advance will actually begin on a close above 57.40. It is worth
sticking a toe in so that it will be watched and a move above 57.40 and the
stock flies. It’s a simple stock to play. The risk is low. Place the stop under
its 200-day moving average at 54.50.
Cadence Design
(
CDN |
Quote |
Chart |
News |
PowerRating) 15.95
The stock came in a
tad and naturally there is some concern that its rising 50-day line will be
violated. The 50-day line trades at 15.59. That is a decent spot to place the
stop. A dime under that level. It really needs to cross 16.40 on a close to
pyramid the shares. Unless the 50-day line is violated keep the position adding
to it above 16.40 on a close. That is how to act relative to this market leader.
If the stock gets bearish the 50-day line will cave. That is a sell signal. It
will fall back to its base. The base is down in the 14 range and I would rather
sell it at the 50-day line and buy it later at the baseline. So CDN is watched
closely. Action will be taken under 15.50 or above 16.40.
MedImunne
(
MEDI |
Quote |
Chart |
News |
PowerRating) 31
Yes. I should be
taking a larger long side position in this lovely hard driving biotech name
right now. I should. It is in great shape after breaking out of it’s long base
recently. It broke in healthy heavy trade. The stock is poised to outperform in
a rising or falling market. Place the stop at 25.99 for long-term investors. Use
the 50-day line to trade. All that is needed to know about this stock is that it
is at the outset of an advance after breaking the lid off the top of its base at
the end of August. MEDI is beginning a new advance. It started this month. That
is the gist of it.
Advanced Medical Objects
(
EYE |
Quote |
Chart |
News |
PowerRating) 37.99
If you have the
appetite to sell short then here is a good choice. Bears are smacking their lips
as EYE completes its major top formation. The stock is just starting a decline
after completing a major top. Check out a daily chart and see the pattern
clearly. The decline gets serious on a drop below 35. Now is the time to begin
shorting the stock and building on it. The stock is falling in heavier then
average trade. Place the stop at 40.50.
Sonic Corp.
(
SONC |
Quote |
Chart |
News |
PowerRating) 27.57
SONC is a good
short. The stock is broke and the decline is benefiting from a tail wind. It’s a
victim of the hurricanes that are ravaging the gulf. The instrument will serve
you well on the dark side of the board. I am involved in this stock short. Gaze
at the chart and you will know why. The reason to short SONC is in the chart.
The chart tells the tale. Look at the classic action expressed by the price
movement over the last year. An advance evolved and topped after which it just
found the edge and rolled over. The stock is in decline and most of the drawdown
this year comes in the last 5 days. Here is one that I have been right about.
Place the stop at 30.70. Short it on a bounce. It ought to at least bounce and
that action provides the selling chance.
Hilton Hotels
(
HLT |
Quote |
Chart |
News |
PowerRating) 22.04
A good short. HLT
rolled over. So it is oversold. Short it up to 23. That is the 200-day moving
average. The stock bounced after testing the bottom. Is 21 the bottom? That is
the question that is likely to be answered near term. If the stock fails to hold
21 then it is curtains for HLT. The stock is now down for the year after peaking
in August at 25.81. It is only down 3% for the year but has fallen sharply since
August. It has fallen into decline. Short it up to 23. Place the stop at 23.99
The hottest team in
baseball in first place where they belong and will likely end the season with
the best record in the American league. The great team from the Bronx is on a
tear. The final 3 games of the season next weekend at Fenway, a dump of a park
if there ever was one. Made of tin and cardboard strung together. A pile of
junk. Well those games next week will determine the American league survivors. I
predict the White Sox fail to make it as the Indians catch them. The Red Sox
will be the wild card. Fireworks as the Yankees and Braves play for the prize.
Yanks in 7.
Jack S. Rothstein
Rothstein
Investment Advisory Services, Inc.
3600 Chain
Bridge Road, Suite 200
Fairfax VA 22030
Phone
888-343-4825 — Fax 703-385-7232
www.jrmoney.com
— www.wealthcast.com
Jack Rothstein is the
President of Rothstein Investment Advisory Services, Inc. and is a 20-year
veteran stock trader and a money manager.
Mr. Rothstein also writes Wealthcast, a monthly newsletter about the technical
behavior of the markets. He has been quoted on Bloomberg, CNNFn, the Dick Davis
Digest and the Dow Jones Newswire. Since 1993, Mr. Rothstein also hosted
WealthCast, a radio show in the Washington DC area covering the stock market.