Potential Short Plays Even Though Dow Plunge To 1997 Levels

ZN is an oil and gas stock that has pretty much gone up exponentially. Today it popped 22% on high volume. This is obviously bad news for early shorts. Wait for the volume to dry out which indicates decreasing buying power. Once the early longs dump this stock the shorts will take control and ZN will probably drop back to $9.00 levels and eventually $6.00 from where it took off. Keep watching !!

TRE is a Canada-based exploration-stage company. The Company is engaged in the acquisition and exploration of mineral properties, including the optioning out of properties for pre-production option payments and royalties on future gold production. As dollar loses its worth, investors find safe-haven in gold. They have pushed gold prices above $1000 recently which caused gold sector stocks like TRE to start rising. No stock moves in one-direction forever. Continous buying will eventually be met with selling and vice-versa. TRE is one such stock that needs a breather providing quick shorting opportunity. RSI is above 70+ which indicates overbought conditions.

Be careful though, since it broke out of its $4.50 resistance.

ANDS is a biopharmaceutical company focused to develop medicines in the areas of hepatitis C and oncology. This stock has run up from $2.00 to $8.00 in matter of a month. The volume is drying out and some initial selling has began. I will keep monitoring it for an ideal setup to short into.

CAB is a direct marketer and a specialty retailer of hunting, fishing, camping and related outdoor merchandise. CAB has shot up huge on positive earnings. This pop was sold into today. Today it broke the 8.00$ mark on the downside which probably is a moral victory for shorts. Will the selling continue ?

MYL is a global pharmaceutical company that develops, licenses, manufactures, markets and distributes generic, brand and branded generic pharmaceutical products and active pharmaceutical ingredients. MYL is another bio-tech stock that keeps going higher and higher. However this stock hasnt run up like ARNA or ANDS. This has been a slow and steady mover. Provides good scalping opportunity. RSI and MFI indicates overbought levels.

MFN is in the business of mining, development and exploration of precious and base metal properties. Interests in these properties are held directly and indirectly and through leases, options and working interests. MFN is reaching its 200dma at $7.00. This will provide a strong resistance. Potential short below the 200 dma. Stop loss on break of 200 dma on the upside. RSI over 70, points to overbought levels.

GEOY popped up 16%, as it announced that the National Geospatial-Intelligence Agency notified the Company that imagery from the GeoEye-1 satellite has been certified as meeting their stringent requirements for quality, accuracy and resolution. GeoEye is now delivering GeoEye-1 sub-half-meter ground resolution satellite imagery to the National Geospatial-Intelligence Agency. However this pop will eventually be sold into. Keep watching.

HPQ sold off heavily recently, falling 16% in the last 5 days. Previous bottom was $28.17 which should now provide first strong support level. RSI is way below 30, indicating oversold conditions. HPQ looks due for a bounce. Potential long play above the previous bottom. However if it breaches the previous bottom, this stock could make new lows. Stop below $28.00

Few other potential long plays are INTC, MCD, JNJ and FRO. All of these are in oversold territory.