Get Ready to Cover CELG; GE Looks Ok

CELG is nearing the point where you should look to cover your short and go long the stock. The 200 sma is rapidly approaching (60.90) from 62.89, the current price. Go long off the 200 sma, you should get a decent bounce. If not stop out and go short once again below the 200.

GE found support on its 200 sma yesterday and has bounced off. Although getting long any stock is not necessarily the most attractive thing right now, I think GE is worth a shot here. It has consistently come off its 200 sma and risen higher. Get long at 37.60 and stop out about 2 percent lower.

Old School Tech is Hurting

Old School Tech stands out as being one of the hardest hit sectors in today's trading. Cisco's failure to meet Wall Street expectations has brought down Intel, Microsoft, Google among others.

This could be a signal that expectations for this group are too high and the momentum is starting to deflate. I would not be looking to get long these names right here. Big red candlesticks should not be fought in this manner. No one is going to be ready to stick their necks out in the near term. There is just too much headline risk and broad market selling.

Just Another High Flyer Coming Down to Reality

Down 30 percent and counting. HANS is getting hit strongly. This mo-mo stock is just the latest one to disappoint investors. RVBD, LVS, CROX have all done this before HANS and are all way down from even their first drop. I would look to short this stock right here starting at 40 bucks and layer more if it moves any more to the upside. Any strength in the stock right now is false strength and will very likely give way to a weaker stock price in coming days.

Earnings Revive TRLG

Excitement over TRLG's positive earnings announcement this morning pushed the stock nearly 15% higher. Retail is a depressed sector right now, as many of the large stocks have fallen victim to negative sentiment leading many stocks to get hit hard.

Now that TRLG has proved itself to not be trapped in retail's circle of negativity, it might be time to look for a trade. The stock is currently being sold off a bit with the rest of the market. However, unlike the rest of the market, I think the news from its earnings report will carry over into the coming days if not the coming weeks.

My advice would be to scale in right here. Starting around 17.40, I would add some now and look to add if it moves lower. Three negative days in a row for the broad markets will likely reverse tomorrow and with that TRLG should continue to fly. Strong resistance is up near 22 dollars. I believe it will eventually make its way up to that level.

CROX Sees More Downside, CELG too

CROX, as I said a few days ago, saw plenty of more downside. The stock is currently trading at 44.20 down about 11 bucks from where I recommended shorting it. I would now recommend covering this trade right now and booking gains. 20% in a few days is no joke!

CELG as I have pointed out many times has a date with its 200 sma. It continues to come down after disappointing the street when it reported earnings. The 200 sma has served as support many times before and will probably do so once again. I would cover once it reaches that level.

Select Stocks Perform Well Admist Down Day

INTC, MA, and MSFT all of which reported better than expected earnings are holding up very well this morning admist a 200+ point drop in the DJIA. Price action like this means something!

I would expect these stocks to continue to outperform the market in the next couple weeks just as they are today. That means buy them, or buy them and short the market.

CROX Likely to Be Down Tomorrow as Well

As a short term trade, I would look to short any pop up in CROX this morning or afternoon. Even though this stock has dropped 26 % i still believe a multi day move downward will happen. In other words, short the stock opportunistically. It is currently right around 55 with a high of 55.86. I would start a position around this level and look to short more if it goes higher. Or if you are an options trader, it might be better to buy puts.

CM