The Russell and Nasdaq broke down further on Wednesday,
but buyers emerged and the day finished with a strong
rally. We expect select growth names to continue to get
hit while money looks for safety. What's noticeable is
that money is not leaving the market, just rotating. So,
with any good news, we may see a significant short-
covering rally. We have a few short and long positions
we're considering, but we'd like to see how Thursday
plays out.
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"Alert" Watchlist
SQNM - looks good, sell strength over $3 SID - buy under $3.9 ACH - keep a stop at $8.75 SUNE - earnings due, should be very good, buy weakness VIPS - may breakdown and hedge our China plays
CX - We've played this stock before and right now it looks
poised to breakout higher. The sector should be safe too,
which makes this an attractive hold if it pushes up through
$13.60+. Look to start a position on a pullback to $12.70
or less.
SHORT CRM - There was no strength to short into. Drop it
for now.
TRLA - Zillow's results were strong, which should transfer
over to TRLA. We'll consider a quick gain if we see a
pop but the tech sector doesn't gain some footing. Hold.
YHOO - The small gain should have been taken. We want back in, but we'll give the stock some time to settle first.
SINA - Hold.
CZR - The trailing stop worked out pretty well as the
stock shot up to the highs of the day right off the
open. We'll look elsewhere now.
FSLR - If you're a believer in the sector and the company,
as we are, you look at pullbacks like this as a gift. If
we see a little more weakness, we'll add to the position.
This stock is going a lot higher. Hold.
SSO - There was a small scalp on the downside, then a long
position should have been started on the upside. We may see more chop, so look for scalps unless you see a move
accompanied by strong volume. Keep a stop at S&P 1868 for
now. If S&P 1865 falls intraday, short SSO with a trailing
stop.
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