While I believe the bearish case has been slowly diminishing over the past few days, I don't believe the bulls have shut the door on any prospect of this market reversing and heading lower yet again.
As I always do, I maintain a long and short watch-list at all times because you never know when the unexpected is going to happen.
At the time of this post, I've included my best short setups that I can find in the market right now, but I'm not short any of them at the moment. Instead, this is the list I will work from if this market reverses course and starts to head lower again like it had been doing prior to last week's rally.
So keep this list handy - there are a number of gems that I would love to take right now, while others need further developing.
There are some very nice bear-flag breakdown patterns that are developing, namely in Youku Tudou (YOKU) and Saint Jude Medical (STJ).
While others like Corsan Limited (CZZ) has moved nicely in a long-term trending pattern, but is showing clear distribution patterns and looking to finally give traders a more extensive pullback.
Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida with a wife of seven years as well as one lively son. More >>
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