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Sunday, July 8, 2012

The Contrarian Report 02/26/12

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In my The Week Ahead Commentary to members of The Contrarian Trader I analyzed the charts of the indexes and the major sectors and believe that the potential for a correction is likely. Last week I mentioned US Home Systems (USHS) of which we are short and have a profit. We'll be looking to exit this position in the coming week. Stocks that we discussed last week which remain on our radar screen are: Companhia de Saneamento (SBS)- This stock consolidated and is a short term buy with but with an eye on getting short on a "key reversal" Synnex (SNX)- This stock is also a short term buy with a longer term on getting short. Plains All American Pipe (PAA)- Has also consolidated sideways setting up the opportunity for a brief rally but again, we want to look to get short. Seagate Technologies (STX)- Remains a short opportunity but the risk to reward is not as favorable as last week. We'll watch it though. Marchex (MCHX) -- We had been long of this stock but were stopped out with a small loss. However, we like the stock and it's large short interest so we may just trade it long again. Almost Family (AFAM)- Potential short after a strong move above all the major moving averages Rex American Resources (REX)- This is one of my favorite shorts and will be watching it with great interest. Crown Castle International (CCI)- Another great short candidate given its extreme overbought condition. Dynamics Research Corp (DRCO)- DRCO is an oversold stock which is interesting given the fair ...
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