Editor's Note: Due to our holiday schedule, this is our last Chart of the Day until Monday January 4, 2010. Happy New Year!
This weekend I promised subscribers an update on the Boxer’s Short List, which we’re going to do tonight, although there’s no urgency to be short anything at this point. A lot of these stocks definitely look negative and are dropping even in the face of a rising market. I don’t think there’s that much risk being short in this market with these stocks, and you’ll see a little bit more about them and why I think that.
Starting with Abaxis (ABAX) you’ll see that the stock was in a nice rising trend and so it jumped from 13 1/2 to 30. It then head and shouldered with a weak right shoulder, broke down, rallied back, then failed, came down and made lower lows into the gap and then moved sideways for about the last 6 or 7 weeks, failing at the declining tops line and the top of the channel. It’s beginning to roll over and a breakdown could occur that tests the 20 dollar level and then perhaps a secondary target at 17 and then 13 1/2. Those are my targets going forward.
Illumina (ILMN) having broken a one-year support level and then forming a bear wedge, even though it was up 79 cents today, you can see the non-responsive technicals as well. It just appears to me that this stock wants to go lower and I’m looking for it to eventually get down to the 22 – 21 zone.
Psychiatric Solutions (PSYS), which has been on our list for awhile, broke its head and shoulder top with a dramatic plunge from the high 20s down to the 17 1/2 area over the course of a week or so, then rallied back slowly over the course of a month to get back to declining tops and moving average resistance. After filling the gap it fell over again, bounced back up again with non-responsive technicals. It appears that this could fail in this zone and roll over again. I’m looking for 17 eventually, maybe lower.
Ross Stores (ROST) broke its trend line, snapped back on low volume, making a series of lower lows but forming an overall rounding type top formation with a breakdown below the 42 area, which is not far from here. Volume is increasing on the downside, down 87 cents today. This one if it breaks here could drop sharply. My first target is somewhere around 37, my secondary target is at the 33 1/2 – 35 zone.
Other stocks on the Boxer Short List are: Baidu, Inc (BIDU), CTC Media, Inc (CTCM), Constant Contact, Inc. (CTCT), Changyou.com Limited (CYOU), Ebix Inc. (EBIX), ESCO Technologies Inc. (ESE), ITT Educational Services Inc. (ESI), Fuqi International, Inc. (FUQI), Goodyear Tire & Rubber Co. (GT), Homex Development Corp (HXM), Lithia Motors Inc. (LAD), Netease.com Inc. (NTES), Nuveen Municipal Value Fund Inc. (NUVA), NVE Corp. (NVEC), Pool Corp. (POOL), Perrigo Co. (PRGO), Perfect World Co. (PWRD), SAP AG (SAP), Schnitzer Steel Industries Inc. (SCHN), Sigma Designs, Inc. (SIGM), Syntel Inc. (SYNT), WMS Industries Inc. (WMS).
That’s it for today. I will talk to you tomorrow.
