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!