"Old cloud" names like F5 Networks (FFIV) and VMWare (VMW) have not participated in the market rally off the lows of early June as they have moved sideways and built what appear to be inverted bear flag type formations after their sharp breakdowns thru their 200-day moving averages. With today's weak rallies up into their 10-day moving averages, we see the stocks as "testable" on the short side here, using tight 3% upside stops from here, max. With the general market rallying today on a low-volume reaction-type bounce, these could reverse and roll over from here. Fair disclosure: we are trafficking in these names on the short side today, and may be in and out of them depending on how the general market and the stocks themselves play out throughout the rest of the day.
SSS - Possible Set-ups as Inverted Bear Flags in Old Cloud Names
|Published:||22 Jun 2012 15:29 ET|
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