relative weakness watch - tuesday 6 march 2007

update tuesday 1:13pm - indecies are making new highs and these stocks are pretty much wallowing in their own muck.

just like yesterday, if you are interested in shorting in these uncertain times, one of the best methods can be to search out stocks that red or relatively unchanged despite strength in the overall market. as i stumble across them, i'll be posting stocks with shorting potential that are not way green along with the rest of the market.

ALL (10:24am | 59.04)
JOYG (12:38pm | 41.36)
CAT might as well lump it in there with JOYG (1:23pm | 63.33)
OVTI not doing much today (2:41pm)
OSG
CSX, BNI, UNP not very impressive (3:42pm)

intraday relative weakness watch

update monday 550pm - the power of relative weakness - stocks mentioned here that were weak this morning while the market showed a tiny bit of strength continued down even further as the indecies fell throughout the afternoon (just something to keep in mind)

just as i suspected, the markets are bouncing today (see here) despite continued asian meltdown. that being said, stocks that aren't moving up with the indecies may present lucrative shorting opportunities if the market decides to continue downward in the near future.

i will be updating this list throughout the day as i stumble upon relative weakness...

ACI - gapped down below the 50-day moving average and staying there so far (1121am)

TOL - sitting on 50- and 200-day moving average crossover support [see here for desciption and examples] - a break hear could yeild at least a buck or 2 down to trend line support (1139am)

SPG - and the rest of the reit sector (are, iyr, etc) - the first red flags of an amazing rally? (1144am)

LVS - looks horrible and has some room to fall before hitting support and the 200-day moving average (151pm est)

OVTI - sitting on critical uptrend support line - a break on decent volume would be nice (click image for larger view of chart) (201pm est)

any chart requests? and intraday fibonacci retracement lines on the dow

if you'd like to see how i might interpret a stock you are interested in, please feel free to make a request in the comments section.

as for finding short candidates under these conditions, i am scanning for stocks that didn't participate in today's bounce. the dow closed the day up over 50 points - which stocks closed in the red or relatively unchanged? LEH did, and i am sure there are others. relative weakness may be the key, at least for now.

yesterday's huge drop has pushed many of the stocks on my watch list very close to critical 50- and 200-day moving averages as well as critical support and uptrend lines. in my opinion, today's action doesn't say much about where may be going so its still a wait-and-see situation out there...

on days like this (big drops and potential dead cat bouncing) i like to follow the action with the added insight provided by fibonacci retracement lines