AFAM, CPLA, NILE, SYK Among Boxer Shorts to Watch

Charts of the Day for Tue Aug 10th 2010
by Harry Boxer, www.TheTechTrader.com

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Today I'm going to cover some of the Boxer Shorts, as the market was sloppy today and could be headed lower.

Almost Family Inc. (AFAM) topped from November through June, formed a little bit of a wedge around the mid-30s and rolled over hard, and over the next couple three weeks, dropped all the way into the 23 zone before bouncing and forming a bear flag. The technicals are not responding very well at all, and it's likely this stock may not be done on the downside. Our next trading target is around the 20 range, and beneath that a complete retest of the lows at 15 may be doable.

Capella Education Co. (CPLA), an educational firm in a very weak group, rolled over hard in the last two or three weeks, coming down from the mid-90s to the mid-70s before trying to bounce, but today backed off another 2.36. It looks like the major 2-year rising channel may be broken shortly. Lateral price support is being severely pressed here, and a break should lead to a move down toward the 67 range, our next trading target, about a 10-point slip from here.

Blue Nile Inc. (NILE), another retail stock in trouble, topped at the end of last year, broke down in February, and rallied back to resistance before flittering back down toward support. Finally, the triple bottom was broken last week, which puts this on our Boxer Shorts list. Today it fell another 92 cents, or 2%, but it appears that lower levels may be reached. I'm looking for a test of the 35 range at some point, perhaps even as low as the high 20s.

Stryker Corp. (SYK), which after forming a 9-month long head-and-shoulders type top, cracked last month only to try to snap back, but poorly so. The bear formation should lead to lower levels. My guesstimate is that we see the stock test the October 2009 lows down around 43, my next trading target.

Other stocks highlighted on Harry's Charts of the Day are Aeropostale, Inc. (ARO), Bally Technologies, Inc. (BYI), Cerner Corp. (CERN), Computer Sciences Corporation (CSC), FTI Consulting, Inc. (FCN), JDA Software Group Inc. (JDAS), Jinpan International Ltd. (JST), QLogic Corp. (QLGC), and Student Loan Corp. (STU).

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