Sunday, April 12, 2009

Quicknote on the coming week

In winding down from the long weekend and sinking into my research for the new market week, I couldn't find much evidence suggesting the plug is about to be pulled on this rally.

We may pullback some, but significant downside in the near-term looks unreasonable still.

I spent several hours more on my updated list for eligible shorts, scouring about a third of 197 industry groups (studying a few hundred charts of stocks from groups dropping in relative strength as well as all of the bottom 25% RS groups); but outside of Medical and Healthcare groups there appear to be few attractive charts for initiating shorts. I am going to wait (still) further to publish names.

If the market retreats some in the next few days and the Medical/Healthcare sectors are not demonstrating any new resilience, I'll go ahead and post my list of eligible Med-shorts. Otherwise I am going to continue to focus on where and when to ramp-up on leadership longs.

Until something changes, I would rather buy or add to leadership on pullbacks than look to short weakness. I see no problem is selling on strength, especially if I can continue to rotate between the many set-ups long (buy as names set-up and let-go or reduce on strength).

That's it for tonight. The futures are down slightly and I'm looking to catch a 6 hour nap before getting started. After selling most of my position Thursday, I'm light, I'm hedged and I'm going to be sleeping easy.

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