Dow 11k, We Hardly Knew Ye

Well, the Dow's triumphant mounting of the 11k level has come and gone. Three days of glory in the sun, and now we're back into the 10s. C'est la vie.

Here's a six month candlestick chart of the $INDU to put this into perspective:


I'd like to offer a pretty interesting short candidate - NutriSystem (NTRI). This was, I believe, the top percentage performer of 2005, and it's at an all-time high right now.

What's interesting to me about this graph is that NTRI broke its ascending trendline and now it's just kissing the underside of it. To me this implies strong resistance, and now is just about the ideal time to short this, because if you're wrong (e.g. the stock moves on to new highs), you'll know almost immediately!


The stock topped out Wednesday at 45.65, so I'd say $46 is probably a pretty good stop-loss point. Good luck!