Stocks This Week: Short IBM And Mattel

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The market is likely to correct this week so short sales are recommended.

The S&P 500 is likely to decline as this week begins so we seek short selling candidates.

The S&P gapped up on Friday and is close to a new high. Friday was a projected turning point. I would go with the direction of the market on Monday, likely down. One reason for this conclusion is short-term sentiment. The American Association of Individual Investors poll was posted on Thursday. There were 40.2% bulls, the most since the 41.6% reading on March 3rd. That date preceded a 60-point one-week drop in the S&P.

The weekly price cycle for IBM hits a peak as earnings are reported after the close on April 16th. The stock has been closely tracking the cycles; 100% of the buys and 80% of the sell signals have been accurate. Technically, the weekly graph reveals that the share price is nearing resistance and is overbought. Note that April 19th has been one of the weakest days of the year for Big Blue in the month of April, down 82% of the time.Price is up against resistance.The weekly Mattel cycle peaks.

 

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