The market continues to be in the correction zone. Number of leaders like GOOG, RIMM, AAPL, BIDU, KNOT, GS, CRVL, GROW, etc. witnessed high volume reversal. After many days for the first time I had 4 stocks on my short scan.
Shorts work well only under certain circumstances. Currently the stars are aligned on some stocks and shorts in them may be profitable. The list I posted some days ago has some stocks setting up nicely for short. The home builders might also be good shorts at these level, now that everyone s noticing the rise in them and shorts were forced to cover. I saw on some blog, some one using technical analysis and 65 day MA recommending home builders at this stage. The time to buy them was in July/ August.
The job number as usual will be watched by all and some will get orgasm dissecting it. The stage of the market is more important than actual numbers. Data gets interpreted differently at different stages. Currently number either way might be an opportunity to lighten up on positions.
See some good short ideas in the idea link below:
IDEAS
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