Tech
Entertainment
U.S. & World
Tech
Entertainment
U.S. & World

Dow Falls 100 Points

By on February 21, 2013

We had been warning about an upcoming correction for the past few weeks now as the Dow kept failing to hold 14,000.

Today the Dow had its worst day for 2013 so far after being down nearly 110 points. Some of the names that had a big run up that we were looking to short gave confirmation of a shorting opportunity today.

While we believe that the market is bullish long term based on improving fundamentals we think that perhaps everyone got ahead of themselves with this rally and now its time to take some off the table.

We think that today is day one of an upcoming correction in prices that will take us down to 13500 on the Dow.

Here are a list of possible shorts:

ETFC

ETFC or etrade had a nice run up to almost 11.50 a share. While rallies such as these ones on etfc aren’t exactly uncommon they typically tend to collapse on their own weight each and every time. The price is trading below its 9 day moving average and we’re currently awaiting confirmation on the down move by waiting for its 4 day moving average to cross below the 9 day moving average as well.

Ford

Fundamentally Ford is a great buy at any level below $20 a share. Technically however the price had consolidated at $13 after our first short recommendation at $14. Today the price broke below $13 which had been its support for the past few weeks. We believe a move to $12 or lower could come in the coming days.

This article originally published at The Street Options.

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