Chart of the Day - Harry Boxer, TheTechTrader.com
by Harry Boxer, www.TheTechTrader.com
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Today since it’s been a few days and because the market looks vulnerable here especially after the feds discounted rate cut and the futures being lower in the aftermarket, it looks to me like we may want to look at the short side, so I’m going to go over some of my favorite shorts at this point from the Boxer Shorts list.
General Cable (BGC), as you can see over the course of May through October, this stock formed sort of a head and shoulder top, broke down from the bear flag, made a lower low, had a 3-wave recovery rally that reached the top of this declining channel, rolled over hard, formed a little mini bear flag, then got creamed last week, before bouncing in a narrow coiling type bear formation. Now, right here is support and if that breaks this stock could plunge and plunge quickly. There is some support around 20 – 21. Beneath that though this stock could cascade down lower though towards the 14 level, my intermediate target.
Lumber Liquidators (LL) had a significant negative session today dropping 3.23 or 12.5%. I believe that was post earnings. As you can see the stock reached right up out of its 50-day moving average and declining topsline and then cascaded lower today. It did bounce slightly off the 22 range, which is this rising bottoms line, but if it cracks here, you’re looking at 19 and maybe16 1/2 going forward.
Scripps Networks (SNI) broke this sharply rising channel, got hammered last week, bounced to form a little mini bear flag here. It looks lower, 361/2 my initial target followed by something in the low 30s.
Telvent (TLVT) also had a very dramatically strong rising channel from 7 to nearly 42, rolled over, hit support and bounced, failed at the 21-day moving average as it was rolling over, came down hard and formed a little bear flag in here. I’m anticipating lower levels with support around 28 1/2 first stop, second stop around 26, perhaps even lower.
Other stocks that can be seen on Harry’s Chart for the Day are C.H. Robinson Worldwide (CHRW), Cubic Corporation (CUB), iShares MSCI Spain Index (EWP), Greif, Inc. (GEF), NewMarket Corp. (NEU), Polo Ralph Lauren (RL), SAP AG (SAP), Syntel Inc. (SYNT).
There’s some ideas for you for this week and the next week or two going forward should we get a declining market for several days or even a few weeks.
