Short Picks for Thursday

After today's trend day down, the market's character appears to be in the process of changing. On one hand, we still have a large number of stocks that acted well on earnings, with charts that remain attractive for long trades. At the same time, several sectors are clearly overbought, and are starting to break down technically. With the set of charts below, I am looking for good swing trade candidates, and will be patient should the market bounce.

For the record, I am still holding a number of long positions, although I've cut back on the thinster variety I featured in yesterday's post. Here are the long positions: CME, ICE, POT, CF, SQM, SFLY, TSM, CSCX, NGD, WNR, and UPL.

Here is a look at some index charts. SPY is sitting on trendline support. A break below 88.00 would be quite bearish. Also note the QQQQ support around 31.80.





I still have most of the short positions mentioned in yesterday's post. For tomorrow, I will be looking to add some short exposure in REITs, retail, restaurants, and automotive stocks. Here are some charts I am watching:

- OFG: One of my favorites. I plan to be patient and hold through bounces.



- FDML: Automotive, poor fundies.



- JWN: Luxury retailer with poor margins.



- MAC: REIT with broken trendline below resistance, which seems to be a typical pattern in this sector.



- BXP: REIT



- SPG: REIT



- BFS: REIT



- ARE: REIT looking to make new lows.



- ABG: Automotive retailer.



- PZZA: Pizza.



- BOBE: Another restaurant stock.



- WHR: Home appliances.



- BOOM: Breaking the trendline under resistance.