Intra-day Stock Picks Jan 13 2014 Shorts

The first short on the list is ARO, Aeropostale Inc.  (NYSE: ARO).  ARO is in the apparel retail sector and trades on the NYSE.  We like ARO as a short for tomorrow for the following reasons:

  • The stock is in a long-term downtrend
  • The stock gapped down after a huge slide in August and continued to fall
  • Since then the stock has stabilized and has been trading in a fairly narrow range without any significant rally to the upside
  • The latest rally attempt failed well short of the previous high and the stock started to sell off
  • Yesterday the stock spiked in the morning and sold off, closing in the lower portion of its daily range
  • Today the stock opened higher and sold off all day, closing at the lows

We will see if there is any follow-through to the downside tomorrow.  For tomorrow if the stock trades below $8.33, we will consider it as a short with a price target of $8.01 as an intra-day trade.  A daily chart of ARO is below:

 

The next short on the list is CIEN, CIENA Corp.  (NYSE: CIEN).  CIEN is in the telecom equipment sector and trades on the NYSE.  We like CIEN as a short for tomorrow for the following reasons:

  • The stock was in an uptrend until it had a sharp sell-off in October
  • After bottoming out in December the stock moved back up to the previous high and consolidated
  • The stock tried to break out yesterday and got sold off
  • Today the stock followed through to the downside, closing in the lower portion of its daily range

We will see if the stock sells off again tomorrow.  If the stock trades below $22.80 we will look to short it with a price target of $22.23 as an intra-day trade.  A daily chart of CIEN is below:

 

The third short on the list is INVN, InvenSense Inc.  (NYSE: INVN).  INVN is in the electronic equipment sector and trades on the NYSE.  We like INVN as a short for tomorrow for the following reasons:

  • The stock made a powerful move up in 2013 and topped out in October just below the 2012 high
  • Since then the stock pulled back and traded back up towards the highs
  • The rally again stalled in the $21 area and the stock started to trade sideways
  • Today volume increased as the stock moved lower, closing in the lower portion of its daily range

We will see if the stock can get some momentum to the downside going tomorrow.  If the stock trades below $19.30 we will look to short it with a price target of $18.80 as an intra-day trade.  A daily chart of INVN is below:

 

The next short on the list is JCP, JC Penney Co Inc.  (NYSE: JCP).  JCP is in the retail sector and trades on the NYSE.  We like JCP as a short for tomorrow for the following reasons:

  • The stock is in a severe downtrend
  • The stock bottomed out in October at the end of a sharp sell-off
  • Since then the stock has been moving up but has not been able to get back to the previous trading range
  • The latest rally was extremely weak and the stock started to sell off in early January
  • Yesterday the stock tried to move up after a gap down but was not able to attract any real buying
  • Today the stock sold off again, closing at the lows

We will see if the stock continues to drop in tomorrow’s session.  If the stock trades below $7.30 we will look to short it with a price target of $7.06 as an intra-day trade.  A daily chart of JCP is below:

 

The last short on the list is TDC, Teradata Corp.  (NYSE: TDC).  TDC is in the computer services sector and trades on the NYSE.  We like TDC as a short for tomorrow for the following reasons:

  • The stock is in a downtrend
  • The stock gapped down in October and has been unable to rally back up to the previous trading range
  • The latest rally failed just short of the previous high
  • Yesterday the stock attempted to rally and got sold off
  • Today the stock followed through to the downside, moving down to a previous support level

We will see if the stock breaks below support tomorrow.  If the stock trades below $43.88 we will look to short it with a price target of $42.89 as an intra-day trade.  A daily chart of TDC is below:

 

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