You are not tracking hrtrader.
12-Jan-09
Breaking Down
Today was a meaningful day for the market, as financial and real estate sector stocks led a broad-based selloff. SPY has now broken its trendline and is below the 50 day moving average. While the chart still shows a higher low in place for now, its failure to hold support is a big negative.
Perhaps more significantly, financials are breaking down. The 11.45 area was key support for XLF:
IYR has also transitioned into a very bearish orientation, breaking down out of a pennant.
The 72.10 area was important support for RTH. Price is now sitting just below that level. A break below today's low will provide a good shorting opportunity.
My short watchlist for tomorrow is quite long. As a word of caution, we could easily get an oversold bounce. Also, many commodity and energy sector stocks are still above support, and have bullish volume patterns. Although I stopped out of most of my long positions early in the day today, I will be watching these same names tomorrow (oil services, steel, ags, alternative energy, shippers, etc.), in case they catch a bid.
If we continue lower, I will be focused on financials, homebuilders, REITs, and retail stocks as short plays. In most cases I am looking for a break below today's low, or a bounce into resistance for an entry.
Homebuilders: CTX, LEN, MTH
Financials: KEY, NYX, DFS, TCB, STD, HDB JEF, RJF, BBV, NTRS, CMA, ZION, FHN, HCBK
REITs: BXP, VNO, ARE, SLG, ELS, EPR, CPT, DLR, EGP, TCO, NHI, MAC, KIM, PPS
Others: BWLD, PFCB, VZ, CX, UAUA, BNI, NSC, WERN, HD, CAB, HIBB, ETH, FL, GE, RSH
Posted at 15:14 in External Blog | Permalink | Top
Momentum Book Updat...
My call to get long materials and energy at the beginning of...
surfviewcapital
ETFs that don’t do ...
Securities lending is the practice whereby mutual funds and ...
macinvestor
National Broadband ...
The big question for investors is what does it mean for the ...
Alok
Sell TEL
Sold TEL, COV and TYC to free up some cash. These three were...
egarbacz
Categories
Holding Tags
Other Stock Tags
0 Comments on "Breaking Down"
You must be logged in to post a comment.
Top