CPLA, FCX, LPHI, SMSC -- Stock Charts -- Harry Boxer, TheTechTrader.com

02/09/11 - Since it's been about a week since we went over the short side, we want to go over some of the Boxer Shorts and give you an idea, or flavor, of some of the stocks that are looking weakest, and perhaps prepare you for what may be forthcoming in terms of a pullback period in the market. http://www.thetechtrader.com

Capella Education Co. (CPLA), part of a weak educational stock group, which has been collapsing in the last six months, dropped back from the mid 90s down to the low 50s. Yet, with four major down gaps in the last six months, each gap was followed by bear formations. The big bear wedge, resulting in a gap, did hold the October-November lows, but the move up was corrective, in my opinion, forming a bear flag. This stock could rollover at any day, take out that 51 zone, and hit down to the mid 40s, or even the low 40s. http://www.thetechtrader.com

Freeport-McMoRan Copper & Gold Inc. (FCX) has broken two trend lines Wednesday, down 1.75, and may be completing a kind of head-and-shoulders top. The line of support that was violated could lead to a sharper down move that quickly takes it down to about 46 1/2 -- 47. If that's taken out we can see further damage in the high 30s. http://www.thetechtrader.com

Life Partners Holdings, Inc. (LPHI) is one of the worst, most negative stocks on the Boxer Shorts List, which we've been negative on since it broke hard and rallied back in December. It worked its way back to 16 3/4, but then rolled over hard and has been cut in half in the last five weeks on strong volume and very negative technicals. Yes, it's oversold and can bounce at any point, but with strong downside momentum an immediate test of around the 71/2 range may be forthcoming, or lower. Something's wrong there. That's for sure. http://www.thetechtrader.com

Standard Microsystems Corp. (SMSC) is a weak member of the semi-conductor group. It ran from 7 1/2 up to over 30, broke hard in early January, went sideways for a couple weeks, tried to rally earlier this week, but came down Tuesday, reversal day, after failing at resistance. Wednesday it was down another 56 cents on light volume. If it does start to cascade lower and take out the 23 1/2 range, it would not be a shock to see a quick test of 21, perhaps cascading waterfall-type event down toward 18, eventually, secondary target. http://www.thetechtrader.com

Other stocks in our Charts of the Day video are American Superconductor Corporation (AMSC), Abercrombie & Fitch Co. (ANF), Credicorp Ltd. (BAP), Cellcom Israel Ltd. (CEL), Dolby Laboratories Inc. (DLB), Hawkins Inc. (HWKN), Murphy Oil Corporation (MUR), Neogen Corp. (NEOG), Tata Motors Ltd. (TTM), VMware, Inc. (VMW).
http://www.thetechtrader.com


Chart Info: Harry's Charts of the Day, published each evening Monday through Thursday, features Harry Boxer's video technical analysis on a stock in play. To learn which stocks Harry is adding to his model portfolio, including stops and targets, sign up for a Free 15-Day Trial to his Technical Trading Diary -- which includes both day trades and intermediate-term stock picks. http://www.thetechtrader.com

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