Five Short & Three Long Trade Picks Traders Should Know About
SWHC popped over its 200 dma and kept going up taking the $4.00 support. However the rally fizzled very fast and SWHC pulled back, dropping over 5%, end the day below its 200 dma. Lets see if it can make a second attempt towards breaking the $4.00 and stay above. Otherwise a potential short.
SonicWALL Inc. (SNWL) designs, develops, manufactures, and sells network security, content security, and business continuity solutions for businesses of various sizes. SNWL has started to run up taking over its $4.25 resistance. Its next test will be $4.85, $5.00 and then the very important 200 dma at $5.29. Will be monitoring this one for potential reversal.
Shanda Interactive Entertainment Limited (SNDA) is an interactive entertainment media company and an operator of online games in China. SNDA was a potential double top. After making a second attempt to move towards the all important $34.00 resistance, it failed. Eventually shorts saw this as an opportunity to go short causing it to end the day -2%. SNDA short trade was listed in my previous post.
MYL was another short in my radar yesterday. Once it cracked past the $13.00 support, it never looked back, eventually dropping all the way to $12.43 providing 5% gain on the short side.
STEC, Inc. (STEC) designs, develops, manufactures and markets custom memory solutions based on flash memory and dynamic random access memory (DRAM) technologies. STEC recently broke out of its $5.00 resistance. STEC faces its next resistance at $5.50. Once this is taken out, it could rally alot. However if it cant break past $5.50, i see it dropping all the way back to $4.50 levels. Keep watching.
Hanesbrands Inc. (HBI) is a consumer goods company with a portfolio of apparel brands, including Hanes, Champion, Playtex, Bali, Just My Size, barely there and Wonderbra. HBI popped on earnings news. RSI has recently reversed from oversold levels and looks to be on a rise. Previous trend shows this thing can continue running up for a while as shorts start covering. This is a potential long trade, if $7.00 resistance is taken out tommorow.
Smithfield Foods, Inc. (SFD) is a hog producer, and pork processor. The Company conducts its business through five segments: Pork, International, Hog Production, Other and Corporate, each of which comprises a number of subsidiaries. SFD finally popped up 13% after been sold off for multiple trading days. Similar to HBI, past trend suggests this could keep running up as shorts start covering their profit positions. A potential long trade if $8.00 resistance is taken out tomorrow.
JNJ is approaching its previous bottom of $51.21. This could be a double bottom and time for reversal. Stop loss below the break of $51.00. RSI hit 30, indicating reaching oversold levels. Potential long trade.
