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July 11, 2010

Institutional investors appear to have taken last week off and so attempting to read much into it would just be inane, wedging action notwithstanding.  Sentiment has gotten pretty negative, however, which makes me wonder about whether any imminent negative reversal really could be in the cards.  It may take some time – that is, if it happens at all.

 

While the evidence up to this point indicates that this past week was nothing more than a “short-covering” snap-back, it is important to take nothing for granted and to at least admit the possibility that we could run even higher from here.  Again, warding off biases is part of the job description. 

 

So with that in mind, here is a list of stocks that, while certainly not perfect, are either basing, holding up well, or that have already broken out:

 

OPEN

ASPS

PRAA

VIT

VQ

UCTT

MGA

NFLX

VMW

BRKB

ROVI

TIBX

CMG

CRM

RVBD

FNSR

APKT

 

The strongest stocks tend to run in groups, so I’ll also include a partial list of these:            

 

“Retail/Whlsle-Auto Parts”

AZO

AAP

 

“Internet-Network Sltns”

AKAM

ARUN

FFIV

LOGM

SPRT

 

“Elec-Semicondctor Fablss”

ALTR

NETL

CAVM

AVGO

OVTI

CRUS

GSIT

ARMH

                                        

“Medical-Products”

CYBX

MEND

THOR

VASC

 

Medical-Ethical Drugs”

VRX

NVO

AZN

SLXP

JAZZ

 

“Comml Svcs-Healthcare”

HMSY

RURL

 

“Mining-Gold/Silver/Gems”

NEM

EGO

GOLD

 

“Computer-Data Storage”

NTAP

ISLN

 

“Computer Sftwr-Medical”

SXCI

MDAS

 

“Internet-Content”

BIDU

ACOM
WBMD

 

“Energy-Solar”

STRI

JKS

   

 

If this market has anything going for it, it’s that nobody believes it can rally; while this is hardly reason to get long here, it is something to consider should you find yourself itching to short something beyond all recognition. 

 

 

Still, the short targets remain the same:   

 

V

MA

BUCY

PCLN

AFL

GOOG

CTRP

GMCR

GS

JPM

AMZN

AAPL

FSLR

 

Having achieved over an 83% return since early May by working exclusively on the short side, I have since covered all my short positions; unfortunately, I did this in too pedestrian a way and it ended up costing me a few percentage points more than I would have liked.  The account is now up 69% for the year.  As they say, you live and you learn. 

 

Earnings are upon us, so stay alert!



Disclosure: Long: VMW, BRK.B