A Sea of Red on My Screens is Starting to Show A Little Green…But When You Mix Them You Get A Color That Looks Like, Well Crap

by Dan August 10, 2011 12:15 pm • Commentary

Most interesting to me is COH which was down almost 28% from it’s all time highs made last month, now one of the first stocks on my board to be up today….The stock is severely oversold and up in sympathy possibly with strong results out of RL last night.  If you are looking to play stocks for a bounce when you feel we have bottomed, you want to look for levels liek $50 in COH, where it basically bounced off of Monday, which also happens to be long term support.    Keep tight stops as usual.  I use this as an example, not as a suggestion.   LULU also an ex-highflier now up almost 2%.

1 Yr COH chart from Bloomberg

 

 

Chinese Internet stocks seeing some strength in tech with SINA, SOHU and NTES all up 1%…this is interesting to me because these stocks are the poster children for speculation in tech……As an example SINA has had four 40% plus moves since March, one that was about 90%……..money flowing back into names like this could create a little short squeeze as SINA and SOHU have short interest above 10%.

I wouldn’t chase these stock as I doubt the names listed above have the influence to create a market rally, I merely mention them as they are the only things that I see up!

Financials have to find some footing and not take out Monday’s lows for any sort of near term bottom.