Bocor, it depends on your objectives as to whether the homeboys are ripe for a short or not. I only looked at BZH, LEN and TOL.
Other than scalping a dollar or two on normal profit taking, I'd have to respond no. Let's look at TOL's chart to get an example of what has been going on with the homeboys.
stockcharts.com[h,a]daclyiay[pb10!b50!b200!f][vc60][iut!Lh14,3]&pref=G
That 50 day moving average has provided more support than the Siegfried Line during WW II.
If you'll look at the lower left hand side of the chart, where it says 25.86, and drew a line connecting all of the bottoms going from lower left to upper right, you'd see a perfect example of a stock in an up trend that gives up nothing more than normal profit taking and heads back up.
To be a good short, you'd want to enjoy a risk to reward ratio representative of more than a scalp. In order to achieve this, you'd need to see some major levels of support broken.
You have a major support level at the 50 dma, another support level of filling a gap at 43 and another gap at 41.
Those gaps up were created on huge volume. Those people may want to defend those positions, but I wouldn't swear to it. Break one of those gaps and the first group might say the hell with it and sell. You'd have some momentum going for you then. That's where I think a good short could be established, but I'd keep a tight stop. Stocks with "real earnings" and "real growth" may become "real popular" around here.
I'd ask Sivle for his opinion, but he's asleep right now.
dabum |
