Look for Both Longs and Shorts
We saw a strong Chicago PMI number, but little profit-taking as Fed Chief Bernanke speaks this morning. It will be interesting to see traders' reactions if we actually see any kind of market selloff -- even something remotely significant. I don't view anything less than 1% as remotely significant, but it is interesting to see a little profit-taking come in on good news. Still, it's the close that matters, and the bears have not been able to hold a move for more than a few hours.
I still believe it is necessary to look for both longs and shorts in this market, although most short positions continue to get hammered. Two of the 10 names I have on my radar are Quanta Services (PWR) and Stamps.com (STMP). I have not traded PWR before, but the chart is has some appeal to the short side. There is a clear double-top in place at $22.50, which makes for an obvious stop. Any close above $22.50 will show that the short side is clearly the wrong position....432 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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