There is a plethora (I love that word) of stocks showing up as possible short candidates for next week. First off, many financial stocks are a) overbought and b) showing tight consolidation patterns over the last few sessions. A look at XLF shows that a move towards the lows of this week will most probably invite a wave of profit taking and a resurgence of wounded (or hibernating) bears. However, a break of the highs around 9.70-10 and this rally may have some legs. Potential names with weaker charts include BAC, C, AXP and WFC.
Steels and some weaker energy names also look vulnerable here as well. STLD, X and CLF are sitting right along the 50 day MA (like soooo many other names as well), not to mention right at the 38% Fib retracement level. Other energy names include D, COP and GMXR.
APOL setup discussed earlier is looking ready to setup for a short below 75.
Good luck.
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FYI APOL reports earnings Tuesday after close.
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