Despite the market rally, most big former leading stocks have simply rallied up into logical resistance. CMG continues to find resistance at the $300 price level, while AMZN continues to find resistance at the 20-day moving average. If we are short these stocks these remain guides for an upside stop, although one can use tighter or looser stops depending on their risk tolerance and preferences.
AAPL is interesting in that we might expect the lifting of the cloud of uncertainty regarding Steve Job s to cause the stock to rally, but yesterday it ran right into the 50-day moving average and turned tail. IF AAPL's weak 12x forward P/E was a "Jobs discount," then that alibi is now out the window, and if AAPL can't rally then the 12x forward P/E might be a harbinger of some other issue ahead for the company. Thus shorts could be taken in AAPL using the 50-dma as a maximum upside guide for a stop.
Other stocks rallying into resistance: VMW, RAX, FOSL. Remember to maintain 3-5% stops on any short-sale positions taken.
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