SSS - AAPL, AMZN, CMG, PCLN: Leaders in Breakdown Mode?

Published : September 30 2011 at 9:47 ET
As we wrote yesterday, the action in these leading stocks is likely critical for the market as they all test their prior breakout points. CMG is below its 50-dma, while AAPL is testing the 50-dma and AMZN looks to be heading for its own 50-dma. PCLN has already broken down hard through and below its 200-day movintg average. If we see clean failures to the downside and through their 50-day moving averages on AMZN or AAPL while CMG continues to remain under its 50-dma then this would likely be further negative evidence for the general market. As far as short-sale targets go, any of these stocks, had you shorted them yesterday on our suggestion, are now profitable shorts, and maintaining yesterday's upside stop-out levels ensures that one short these stocks has a chance of scoring if these stocks continue to break down while keeping risk to a reasonable minimum.

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