Shippers

If you happened to miss GNK (click to view) when it broke it's neckline on June 9th, you may have another chance. Often, after a H&S pattern has been validated, a retracement back to the neckline can provide a low-risk shorting opportunity. In this case, entry at current levels, with a stop above 64.50 would provide such an entry.

Here's a look at the competition to get an idea of the health of the sector.
DRYS
EGLE
EXM



Create alerts for the following:
GOOG - go with the direction of the breakout
CVD - short on a close below 78.50
PG - short on a close below 64.72
ADBE - short on a close below 40.51

I'll try to find some longs to balance this out but most of my charts are pointing down in the short-term .

Trading for a Living
When the slope of MACD-Histogram moves in the same direction as prices, the trend is safe. When the slope of MACD-Histogram moves in a direction opposite to that of prices, the health of the trend is questioned. It is best to trade in the direction of the slope of MACD-Histogram because it shows whether bulls or bears dominate the market. The slope of MACD-Histogram is more important than its position above or below the centerline. The best sell signals are given when MACDHistogram is above its centerline but its slope turns down, showing that bulls have become exhausted. The best buy signals occur when MACD-Histogram is below its centerline but its slope turns up, showing that bears have become exhausted.
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Adobe

Anyone who has ever used Flash can appreciate this. It's an amusing flash movie titled Animator vs Animation:
http://www.albinoblacksheep.com/flash/animator
(I wish I could remember who showed this to me but I'm sure there's a link to their site on the side of this page)
and the sequel can be viewed here:
http://www.weebls-stuff.com/toons/Animator+vs+Animation+2/

All of this silliness naturally made start thinking about how ADBE looks these days, chart-wise. Check it out: (ADBE)

A head & shoulders pattern appears to be forming. I also highlighted a similar occurrence (to give an idea of how these can play out) at the beginning of '08.

Adobe just reported good earnings yesterday and plan on having a good Q3, but also said they are not recession proof... So basically if your market outlook is bearish, ADBE could be a good way to play it.

Front month Put Open Interest appears to be significant, though I would recommend looking at least out to July. Finally, be aware that IV is a little high in the short-term.


Trading for a Living
Head-and-shoulders tops mark the ends of uptrends. The
"head" is a price peak surrounded by two lower peaks, or "shoulders." A
neckline connects the lows of declines from the left shoulder and the head.
The neckline does not have to be horizontal-it may be flat, rising, or
falling. A downsloping neckline is especially bearish - it shows that bears
are becoming stronger.