Interesting action was all over the market today:

Oct 28th

The difficulty is that this counter trend rally has erradicated any positive trend scores from our system.  Previously, the Ultra Short Index Funds like: SDD, QID, SDS and SKF were the only things packing a positive trend score on our scanner.  Now with the Dow, S&P 500 and Nasdaq all pulling in gains around the 10% mark, nothing is showing up with a positive score.

On the flip side, however; after a huge market rally like we saw today, more and more attention should be paid to the negative trends.  Anything still showing negative trends on days where the market rallies like this are candidates for our short list.  Here's what we have:

  • E*Trade.  Upon putting out earnings and having over twice the deficit in profits that the market predicted led E*Trade to the chopping block.  An analyst downgraded price targets, and the market pretty much moved the price to that target.  Given our recent 'avoid financial companies' policy, this one is a no touch for us.
  • Advance Micro Devices.  Selling activity has been all over this semiconductor company since September.  Our plan here is to watch early morning action, and if waters are favorable, we'll initiate a small short position with a stop above $3.20.
  • Las Vegas Sands.   Guess the market doesn't think a whole lot of people are going to be vacationing in Vegas in the near future.  Same plan as AMD, with a stop at $7.50
  • Nabors Industries.  No surprise that this company's price tracks the price of oil.  Normally we'd buy some deep in the money puts for this one, but because of the ludacris volatility affecting the pricing of options, this one we're just going to sit on the sidelines.

Remember: This isn't advice, just our observations and our plan.

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