Previous Virtual Portfolio Update

Footlocker (FL)

Hanging on at these levels. I’m certain the markets are going to be headed sharply lower over the next couple of days. That said, Footlocker has been bucking the trend, and headed higher since late December. With a strong break out of a 3 month trading range, or slim-jim.

The weekly chart still looks very strong. We are very close to getting a buy signal on the Aroon, the MFI is holding up in the high 70′s, and the MACD is rising withe a fairly fresh cross over buy signal. I would like to see the signal line pass above 0. Volume on the breakout above resistance was also very high. This could be a cooling off week for the stock, where it might retest the $8.40 area. Look for this to be a strong area of support, and a strong bounce from there.

New Short on the SPY

Today I added 1/2 – short position, 65 shares of SPY @ 77.14.

The technicals really turned negative, with signs starting around 11:00 AM EST. A divergence in the Price Oscillator / MACD began to form. At 2:15, the indicators started flashing sell signals across the board. As soon as we broke below the support around 77.20, I put a new short order at 77.10, which got filled at 77.14.

sp-500-march-16th-2009
click to enlarge

I still have target on the S&P 500 of 575, which is a 24% decline. The SPY should easily our target around $64 based on this kind of move.

New Watch List

I’m working on a new shorts watch list, it’ll be out tonight.

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