Sunday, July 22, 2012

Watchlist for the week of July 22nd, 2012

So last week we got to my 138 target on the SPY and near the top of the bear flag on the daily chart. I went short near that target, but I was too scared to hold over the week-end. The SPY and the DIA printed a doji on thursday, right near resistance, so that was a fairly good "caution" signal. The next day we gapped down, so it seems we might have a short-term change in trend. I'm expecting more decline in the indices this week, but we might need to consolidate a little more before a fall back down to the ~135 area in the SPY, as there are many moving averages below the current price that will serve as support (the 10, 20, 50 and 100d MAs). Eventually, I think we might break down from this bear flag on the daily, but I'll have to see confirmation of that before going all in short! Below is a daily chart of the SPY, with my target near 135 highlighted:




Here are some stocks I'm watching for the week:
Long: ENTR, AFFY, GERN (above the 200d only), CLDX, AUTH, ALNY, BWS, COG, KEG, MSM, DDD

Short: AUXL, PCYC, SOHU, GNW, MHR, MCP, SBUX, HTZ, FONR, ORI

Parabolic short: PSTI (I'm already short this name), STEM (also have 1/4 left short), KEQU, PPHM, CPRX, ALJ

Dead cat bounces: DF, WHX (maybe one more day), CMG, OSG, HHS, IRG, GORO, STAA

Good luck this week, and feel free to drop me a line if you have any comments or questions!

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