Watchist 09-05-08

Watchist 09-05-08

QQQQ
LM
GS
FDX
BIDU
RIMM
MA
CME
AAPL

QQQQ

.
.
.

Too far, too fast.

Be aware of earnings announcements and volatility - the following are based on charts only.

SHORTS:
In most cases these are stocks that are due for a pullback or have broken support.
LVS (this was my favorite until they talked about it on CNBC but nonetheless)
WYNN
CME
FDX
XLE
MA
NMX


LONGS:
In most cases these are stocks that have been beaten down too much too fast (i.e. UNG) or are presenting a low-risk entry (i.e. AMZN) at support
UNG
AMZN
DBA
FXI

...after the bounce

SPY has a good chance of climbing back to its "double bottom" levels of 126 (former support) as the oversold conditions get worked off. And if (when) it does, I would seriously consider taking the opportunity to lineup your next round of shorts. Follow the market's lead - look for individual stocks that have also recently broken support and are climbing their way back to the underside of a pre-existing support/trend line, then pick up some puts.
Below are some future suggestions - you will notice that currently NONE of them are at a low-risk entry point, so be patient.
FDX
GS
FXI
BIDU

My favorite is FDX. Short it when it gets back to low 80s. Energy stocks continue to get whacked - stay away from them, that goes for coal, steel, and ag stocks too. They are all technically broken. There will likely be a good time to get back in but it's not now. Consider picking up some calls on these; however, once the market hits overhead resistance (to remain delta neutral).