The Ts indicators closed at 0.38 and 0.68, and as both are below 1.00 we are said to be in a Down trend condition. However as the 10 week moving average is above the 50 week moving average on the S&P 500 we are said to be in a DN/UP condition. Caution is warranted and as the market is no longer on an oversold signal, we want to maintain net short exposure. We closed Friday with a 40% net short position and we feel that is about right. Today we will buy and sell the following at the market opening price;


1) Taking profits in Superior Well Svcs (SWSI – 14.17), the stock has fallen 20% since we shorted it just seven trading sessions ago.

2) Success Factors (SFSF – 16.82) we will short 600 shares at the market opening price. Technically SFSF has been on a tear, almost quadrupling in price from the $5 low to a recent high of $19.50. The stock is breaking down recently however below the 50 day moving average, and the slope of the 20 day has moved sharply lower for first time since last March. Fundamentally we have no idea why this stock commands such respect. SFSF just lowered expectations to break even for the year. They do have $1.55 in cash, but the stock trades at 8x sales and no earnings. Looks vulnerable. Place stop at $18.50