The Ts indicators closed at 0.79 and 0.81. As both are below 1.00 we are said to be in a Down trend condition. However as the 10 week moving average on the S&P 500 is above the 50 week moving average we are said to be in a UP/DN condition. The market still remains near term oversold, but yesterday’s strength has eased the situation, and we will increasingly look to add short side exposure on any further upside. We will short the following at the market opening price;


1) Atlas Energy (ATLS – 31.04) we will short 320 shares at the market opening price. Technically ATLS has been going straight up since bottoming at $7 last year, but has potentially at least set a double top at a little over $32 Fundamentally this heavily indebted company appears to have got ahead of itself trading at 45x this years earnings estimate. Place stop at $33.20

2) Global Crossing (GLBC – 14.09) we will short 700 shares at the market opening price. Technically GLBC has significant resistance at 15.50/15.25, and it looks like a potential top at that level. Fundamentally it’s the same old story for GLBC, still swimming in red ink and over a $billion in net debt. The stock has tripled since last March, but looks to be a good time for some consolidation. Place stop $15.60