Posted by downtowntrader | 6/05/2006 10:11:00 PM | 0 comments »

Just like that the indices are back near their recent lows. Pay attention to the Nasdaq in particular as they are sitting on a long term trendline. It may get ugly if it breaks down tommorrow.

I am still looking at select longs in the case that this is simply a restest of support, but I am seeing some juicy shorts as well.

This is the first time I have seen this stock and the chart caught my eye. SABA attempted a breakout today but pulled back with the markets in the afternoon. I like the weekly chart as well showing them over long time resistance.LQDT was one of the stronger stocks today bouncing off support. Formed a nice bullish engulfing pattern today.
CKFR is a short that came up on my Trade-Ideas Short breakdown scan that I highlighted a few days ago here.They look like they may test 200sma.

I saw a lot of homebuilders on my short scan today as well. The homebuilders are pretty steeply oversold as a group, but they are showing signs of a possible downward accelaration. Here is KBH breaking a trendline.
MTH is also lookig very weak and is under lots of resistance.
MYOG is one I have been watching as it tested the uppoer trendline. This is a little different from the breakdowns shown above, as I am trying to pick a bounce off a trendline.

Thats it for tonight.

Good Luck,