I just ran though my scans and didn’t see as many interesting charts as I thought I would. I’ve added quite a few to both my long and short watchilists. Since most stocks still haven’t reported earnings I don’t want to comment on them. But here are a few charts that I thought were worth noting:
First, I got this email from Paul about my earlier comments about Yahoo:
I noticed on your site you think YHOO will be a good short candidate if it reaches it’s 200 day MA. What leads you to that conclusion?
I’ve noticed that when RSI indicates YHOO is oversold, it tends to resume it’s uptrend. However, now that I look at the 200 day after the last major gapdown (July), it took two months to break the 200 day. So I’ve got some conflicting signals here.
I said I’d be looking to short it on a weak bounce near the 200-day moving average. What I mean by a weak bounce is a low volume bounce and/or if I see bearish candlesticks forming at or near the 200 DMA. You can see on the chart how formidable the 200 DMA was a few months back. My logic is simply trading with the long term trend — the stock is under the 200 day moving average, therefore the long term trend is down. I like to enter shorts near resistance, which the 200 DMA should be. If I see YHOO struggling near some other, lower resistance I’d try to short it there as well.
Next up is the Banking Index (BKX) which just completed a triple (quadruple?) top:
Here’s the Semiconductor index (SOX) which has been a leading sector. I’ll be watching this closely as well as some individual semis like AMD, CYMI, LRCX, BRCM and MRVL…
Is the mighty Whole Foods finally rolling over? (Say it ain’t so!) Earnings are due in a couple of weeks…
And finally two of last year’s leaders Google and Apple:
Oh yeah… how about those Steelers? 
Great set of charts as usual. I’ve never read O’Neil’s book on shorts. I guess I should get a copy.
It will be interesting to see whether a (likely) rally off Friday’s action will establish a new range bounded by Friday’s highs and lows. The TRIN close at 2.14 is very suggestive of a rally, and I’m kind of kicking myself for not having cashed in even more puts Friday.
Is the BKX mourning the soon-to-occur departure of ‘The Maestro’, the banker’s friend in time of need?
One thing to note though, is the huge differnce between the 50 dma and 200 dma on YHOO. Shortly after the last gapdown, the 50 crossed below the 200. There’s currently a huge gap between thr 50 and 200
Can you chart out AV and EGHT please? I’d be interested in your thoughts for these two for the mid-term.