Tuesday, August 30, 2005

More Short Ideas

I continue to be very pleased at the structural breakdown of the stock market. It's like watching a cruise ship turn around; it's slow, it's steady, and it's massive.

Below are a bunch of different short positions I'm in right now; as always - (disclaimer-time here!) - these are just for your observation, entertainment, and further analysis. These aren't recommendations. But they're worth checking out.

Here's Comtech (CMTL) in a very toppy looking pattern with a nice clean stop price.

Next is Conmed (CNMD), which I've been following a long time. It broke beneath this neckline a couple of weeks back and has now retraced to the underside. Looks like a nice short opportunity to me.

Everyone's favorite Internet stock, Google (GOOG), is below; once again, a nice clean break with the price kissing the underside of what used to be support:

Gilead (GILD), an idea I got from fellow chartist Michael Kahn, is shaping up to a lovely head & shoulders pattern (obviously a favorite of mine, since I keep mentioning this popular pattern):

Chocolate maker Hersheys (HSY) formed a massive head & shoulders pattern. It's not perfect, since the left shoulder is actually a little lower than the right, but we'll let that go.

Invitrogen (IVGN) broke a huge ascending trendline a couple of weeks ago and is kissing the underside of that line:

Kerr McGee (KMG) has benefited from the massive surge in energy prices; to my view, this looks extremely richly priced at this point; notice how lofty it is with respect to the wedge pattern I've drawn.

OMI Corp (OMM) is a very simple rectangular pattern; as with so many of these examples, support has changed into resistance, and the price is beneath it now.

And I must again mention PetsMart (PETM), mainly because this head & shoulders pattern is so large (the only larger one in recent memory is Family Dollar Stores, FDO, mentioned a couple of times in this blog, which continues to founder).

As always, good luck in your trading!

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