TRADE IDEAS

WB – Wachovia Corp. (Short), $15.06

Why: WB’s rally has faded on weak and weaker volume for the past month. The stock has broken back down below the 50-day MA. Yesterday was a reversal day, and today is a confirmation day.

JPM – J.P. Morgan Chase & Co. (Short), $36.80

Why: After consolidating for a month, a doji appeared yesterday and JPM broke through the 50-day MA again today, confirming an evening star pattern with a high likelihood of a continuation down. Numerous failures at the 200-day is also a bearish signal.

MS – Morgan Stanley (Short), $39.61

Why: MS broke its trend today after failing the 200-day MA. I expect some consolidating at the 50-day MA level, but otherwise, today’s weakness shows a high likelihood of a downtrend.

BAC – Bank of America Corp. (Short), $29.42

Why: BAC traded in a range, but was unable to make a new high. Instead, BAC broke down, rallied for 2-days before dropping again today. I expect support at the 50-day, but it looks like BAC uptrend is over in the short-term.

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