[theory6453]

Nice bear flag. Very nice setup here!

Hey Jere. Thanks for all the great charts. Have enjoyed checking them all out.

Just curious... I notice that most all of your picks are shorts. The book talks about mainly going long when the market is in Stage 2. Is there a particular reason all of your picks are short? Are these intended to be short-term trades or are you sensing a more long-term weakness in the market and that we might be headed into a Stage 3?

Not asking to be critical... just want to understand your thinking...

Thanks!

[isatrader]

Here's a number of stocks in the US already in and potentially breaking down into Stage 4A today. ARTC, CDXS, CYNO and EBAY which was flagged by Jere on Wednesday on the thread.

[Jere]

Nice bear flag, its already dropped 20%, but the longer the base the greater the move. and this on has over a year and a half of horizontal movement. PNF chart shows a bearish target of 14. MOS is in the same note. What I really like here is that there is no support level nearby for the last 2 years!

[isatrader]

Nice head and shoulders completion in Tata Motors (TTM), and it managed to finally close the week below the major support from the last year, so is in Stage 4A imo.

[isatrader]

KORS bucking last weeks negativity in the US market to make another Stage 2 continuation move higher on Friday. Attached is the daily chart.

[isatrader]

IMRS made a Stage 4 continuation move below the June swing low to close at new all time lows.

[isatrader]

I've manually gone through the S&P 500 charts of the four sectors with a negative Mansfield Relative Strength reading this week from the sector update in the main Stage Analysis thread. The four sectors with negative relative strength readings were Basic Materials, Technology, Consumer Staples and Utilities. And I've picked out a number of Stage 4 stocks that look interesting to me for the watchlist: AA, BRCM, CTL, IBM, SO and PM.

Basic Materials

   

Technology

BRCM has already fallen a long way in a short time, but it was from a big two year range, so could present a chance to short on a pullback towards resistance possibly.

       

Consumer Staples

   

Utilities

       

[isatrader]

A final one for tonight from my manual scans is EXPE (Expedia) which had a large gap down in July, and has been consolidating for the last month, but looks vulnerable to a Stage 4 continuation move lower, even though it's in the strongest group currently of the major sectors.