We still consider some of these short-sale targets to be in play, such as BIDU rallying up and just past its 50-dma, and GMCR, which has merely rallied to the top of a possible right shoulder within an overall head and shoulders topping formation. AAPL has yet to break the 400 price level, and so until it ever does we would not be aggressive on the short side in AAPL, although the stock is only up 2% today on big GOOG earnings. Today's big gap move should not cause too much damage given the small % move in AAPL.
That all said, this market continues to move higher, but as we see it this is mostly a junk rally, but given the bizarre QE times we live in, it does not surprise us. The best tactic if one is intent on shorting this rally is to play light until some confirmation that the rally is failing becomes apparent.
Meanwhile, we do not view Wednesday's weak 1.43% move in the NYSE Composite Index when none of the other major market indexes could even muster a 1% move on the day to be a valid follow-through day as we measure them.
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