Asia was mixed, Europe is mixed and futures are slightly lower. With a lot
riding on the summit meeting Wednesday, Im targeting a few overbought stocks
that could fall $.50 per share or more if the bears come back to Wall Street
this week. SMF Energy Corp. ( NASDAQ:FUEL ) is up over 100% since July and its
latest move from $2.40 to above $3.00 is starting to show some weakness on
declining volume. If this bull flag cant hold up, Ill look for $.40 cents a
share down to support around $2.60. The Relative Strength is overbought above
the 70 line and trending down. Tiny market cap of $25 million makes it very
volatile. Last time it was overbought was in September and it pulled back $.54
top to bottom. Raystream Inc. ( OTCBB:RAYS ) is a pretty looking pump to line up
as a short. While the pump is strong Ill stay away, but when RAYS starts to show
signs of weakness Ill move in for a big score. Right now the Relative Strength
is extremely overbought and the MACD is curling down toward the signal line for
a bearish break on declining interest. Only so long before it dumps so its all
about timing. If youre looking for other example charts on pump dumps, pull up
Jammin Java ( OTCBB:JAMN ) and youll get an idea of why Im watching this one.
Pizza Inn Holdings ( NASDAQ:PZZI ) is the perfect example of what I look for in
day trade short position. Originally put on short watch last Monday due to
overbought status , were now starting to see some profit taking here. With a
short range of over $1 down to support of $3.50 and still overbought, Im
watching the markets close on this one.
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