Stock Market Watch

Technicall overbought; 5 stocks around $10 to consider short

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By Jason Bond of JasonBondPicks.com

The following stocks JBLU, HEK, MBI, CDR and SWHC are technically overbought above with a 14-day Relative Strength reading of 70 or higher. Many of these charts could continue to climb steadily but when they crack it’s a given that profit taking will ensue. Trade your hand right and this can be a very favorable chart patterns going long followed by short. If you are new to shorting, this FREE 45-minute video I did will get you started.

JetBlue Airways Corp. (NASDAQ:JBLU) provides passenger air transportation services in the United States. JBLU has a market cap of $1.66 billion and a reported short interest of 4.7 days to cover. As of Friday 12/16/11 the 14-day Relative Strength of JBLU was 73.91 and heading up. Resistance is at $6.28 – $6.45 before shares can push the 52-week high of $6.79. Support is at the MA(200) of $5.06.


Heckmann Corp. (NYSE:HEK) is a holding company, acquires or makes investments in various businesses. HEK has a market cap of $786.74 million with a reported short interest of 12.3 days to cover. As of Friday 12/16/11 the 14-day Relative Strength of HEK was 71.33 and accelerating up making a new 52-week high at $6.79. There should be light support at $6.70 followed by $6.50 – $6.30 before all three major Moving Averages 20, 50 and 200 around $6.

MBIA Inc. (NYSE:MBI) provides financial guarantee insurance and related reinsurance, advisory, and portfolio services for the public and structured finance markets; and asset management advisory services in the United States and internationally. MBI has a market cap of $2.29 billion and a reported short interest of 12.1 days to cover. As of Friday 12/16/11 the 14-day Relative Strength of MBI was 74.63 and weakening. Resistance is at $12.65 with support at $11.00, $10.63 and $10.30 before the 20 Moving Average. The 52-week high is $14.96 from last January.

Cedar Shopping Centers Inc. (NYSE:CDR) is a real estate investment trust, engaging in the ownership, operation, development and redevelopment of supermarket-anchored community shopping centers and drug store-anchored convenience centers in the United States. CDR has a market cap of $272.07 million and a reported short interest of 6.6 days to cover. As of Friday 12/16/11 the 14-day Relative Strength of CDR was 73.54 and slightly heading up after a crack Thursday. Resistance is at $4.22 and $4.33 with support at $3.85 followed by $3.50. The 52-week high is $6.59.

Smith & Wesson Holding Corp. (NASDAQ:SWHC) provides products and services for safety, security, protection, and sports in the United States and internationally. SWHC has a market cap of $253 million and a reported short interest of 8.7 days to cover. As of Friday 12/16/11 the 14-day Relative Strength was 71.13 and slightly strengthening after an overbought reading and a price pullback from $4.01 – $3.62. There is resistance at the 52-week high of $4.08 with support at $3.60.

By Jason Bond of JasonBondPicks.com

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Post Written By: Jason Bond

Jason made his mark (and fortune) on Wall Street by spotting opportunities, pouncing and locking in those profits fast. His shares his strategies and winning swing trades at his website http://www.jasonbondpicks.com/


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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