AFAM, AMED, CFN, DO Among Boxer Shorts to Watch
by Harry Boxer, www.TheTechTrader.com
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Today we’re going to cover some of the members of the Boxer Shorts List that are looking particularly negative.
Almost Family Inc. (AFAM), a healthcare-related service firm, had a big run up off the early March lows like many stocks did in 2009, taking it from about 14 all the way up to 43 and change. The stock rolled over in May, bounced, formed a little bit of a bear flag, completed a topping pattern, broke down with a big breakaway gap to the downside, taking out the neckline at around 33.57. It was barely able to bounce, forming a little bear flag and appears that it may not be over yet to the downside. Looking for a move that takes it down into the low 20s, my short-term trading target, to test the July low.
Amedisys Inc. (AMED) is another health care related stock that is crumbling. It created a topping pattern, took that out with a breakdown in May. It kept edging lower, spiked down a week and a half ago, and now has formed a bear wedge. If it cracks this pattern to the downside, we’re going to see lower levels. Looking for a potential move down to test the 28 1/2 level on a short-term basis, my initial trading target.
CareFusion Corporation (CFN), medical instruments and supplies, topped over the course of the last several months, broke the neckline of the kind of head-and-shoulders top. It bounced a little bit, but it backed off again. This stock looks weak and is not responding very well. We could see a full-fledge return to sender all the way back down to 18 – 19 level, my short-term trading target.
Diamond Offshore Drilling Inc. (DO) cracked at the 84 level in May, went all the way down to the mid-50s, bounced, backed and filled, and now it’s formed a big bear wedge. Should this break to the downside, this pattern could quickly retest the lows around 54, another 10 points down. If that’s taken out, there’s a substantial amount of support in that zone going back to 2008-09. Short-term we’re looking for a retest of the lows at 54-55.
Other shorts on Harry’s Charts of the Day are Family Dollar Stores Inc. (FDO), Gilead Sciences Inc. (GILD), Google Inc. (GOOG), Global Payments Inc. (GPN), JDA Software Group Inc. (JDAS), Jinpan International Ltd. (JST), Noble Corp. (NE), Oceaneering International, Inc. (OII), Reliance Steel & Aluminum Co. (RS), Student Loan Corp. (STU).
