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Possible Short Term Tops

It looks like certain semiconductor and storage plays have possibly topped out today. After an initial gap higher, they have turned to the downside even as the markets remain higher. Their daily charts are extremely extended and into major resistance. The first stock that has shown a good top reversal is Cree, Inc. (NASDAQ:CREE). In two months CREE has gone from $48.00 to a gap up high today of $72.85. Even with the markets near the highs of the day, this stock has now reversed and gone negative. The second stock is Riverbed Technology, Inc. (NASDAQ:RVBD). RVBD opened higher at $37.60. Since then, it has dropped, going negative on the day. RVBD was a $12.00 stock at the beginning of 2010. Just in the last month, RVBD is up almost $10.00 per share. The reversal today, could spell a solid short term pull back in the stock. The semiconductor ETF is also looking like a top is near or already in the stock. Semiconductor HOLDRs (ETF) (NYSE:SMH) is extremely extended. Watch for a pull back. To gain more guidance, swing trades and education, join the Research Center.

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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