Morning futures are looking strong, but don’t take it for granted that we will bounce off of yesterday’s decline. As of this writing the Dow is up 74 points, Nasdaq is up 19 points, and the S&P up 8.5 points. Lehman (LEH) is taking some steps to try and fix their credit crunch as they provide Wall Street with a plan to fix their balance sheet today. Obviously this is the primary source of the early rally in futures. If there is substance to the plan, we could easily erase yesterday’s losses. This is undoubtedly one of the most hormonal markets I’ve ever seen.
Anycase, believe it or not, my scans didn’t show too many short setups this morning, in fact, only one. APP has almost doubled since the beginning of August, and now is starting to pull back some. I’d be careful with how you enter into this type of stock, waiting for a break of support before entering the trade, instead of shorting on strength, because if this market rallies, it will no doubt take APP with it. Also, I’d be careful about shorting this stock right out of the gate. Let the market settle in to the first 30 minutes or so of trading as the first half-hour to hour can be very volitile. And remember – always use stop losses .
Here’s the Potential Short…
I personally wouldn’t mind seeing this stock drop like a rock either since they enjoy putting filthy advertisements all over the internet, targeting teenagers in particular. But lets not make trading personal.
