What troubles us abut this market is the slow, steady deterioration in leaders and former leaders. Volume is up currently and the indexes are reversing. Right now we see the following stocks as shortable, using a 3-5% upside stop max: Chipotle Mexican Grill (CMG), Baidu (BIDU), Fossil (FOSL). Previously we discussed VMware (VMW) and F5 Networks (FFIV) as downside breakouts from reverse flags a couple of weeks ago, and they are starting to come loose as well, so we view them as potential short-sale targets here. We think that if the market continues to deteriorate these will head lower.
SSS - Some Set-Ups on the Short Side
| Published: | 10 Jul 2012 16:03 ET |
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