Trade Ideas: ALK

Not much loving in the markets, but non-day traders jumping on the sell side following the failed test of moving average resistances in the various indices, may be doing so a little early. Indicators are still in (or close to) oversold conditions which increases the risk for sellers, in much the same way overbought market conditions did for buyers in February to May of this year.

Although tech averages have suffered in 2006, large caps and small cap indices have been able to post new multi-year highs. A strong reversal will need a (failed) test of these highs to confirm the bearish picture. This will be the time to go short with confidence and I am looking for a summer rally to do this.

Given the selling I was surprised to see quite a few stocks on the Trade Ideas scan. Today's pick is ALK.





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