January 2, 2012 (11:30 pm)
We’ll update our thoughts on the current market action tomorrow morning. In the meantime, here are a few other stocks we’re closely watching.
Boeing is becoming overbought just as it reaches the top trend line of a picture-perfect rising wedge. This is a bearish pattern. We’ll be looking to short the common or purchase puts in the coming days depending on how the price action develops.
Bank of America has been trading in a tight rising channel. A breakdown could happen quickly, given its 33% gains over the past six weeks.
SodaStream is entering overbought conditions as it runs above its upper Bollinger Band. The last four times it reached these RSI levels, it saw a quick reversal. When you combine it with the high levels on the Chaikin Oscillator, it looks like a compelling short opportunity.
Yelp has been forming a clear-cut symmetrical triangle. It broke to the upside today with a $3 target move. If it drops a bit and successfully re-tests the upper trend line, we will likely get into a short-term long position.