The mentions this week are based on my own personal belief that the indexes will go down very soon, even if they are able to make new highs. Nonetheless the chart picture is quite muddled and sensitive to news, therefore entry points into short positions need to be monitored quite closely.

All my mentions this week are in stocks that are in overbought conditions and who have close-by resistance levels of consequence. If the indexes are rallying on Monday then wait to get involved in the short positions when at the most advantageous price is seen. In addition, take this week's mentions with a "grain of salt" as things are not clear, fundamentally speaking, in the marketplace.

SNDA (Friday Close at 37.18)

For those of you that may be looking for an aggressive trade with a fast short-term profit potential SNDA is the stock to look at. Last Wednesday's rally up to 39.08 reached an area of major resistance on the weekly charts going back to June 2005. After reaching that area SNDA seemed to hit a brick wall and dropped almost $2 over the next 2 trading days. A rally to re-test the resistance area is likely as the stock has been on a very strong up-trend over the past month and is not likely to turn around without at least a re-test of the highs.

It is highly likely as well that SNDA will correct back down to at least the 32.98 level at this time and it is also likely that SNDA will get into a range between $30 and $40 for the next few months.

On a weekly closing basis there is major resistance at 38.71 and on a daily closing basis at 39.26. The 38.68-38.71 seems to be a good area where shorts can be placed. It is likely that a rally up to that price will be seen as a re-test of the recent 39.08 intra-day high. Support will now be found at 32.98 from two previous daily high closes, 1 daily low close, and the 20-day MA. On an intra-day or intra-week the support is down at 31.96. Major support will now be found at 29.72.

Sales of SNDA at 38.60 should be made placing a stop-close only stop loss at 39.26 or an intra-day stop loss at 39.75. The first objective and most likely to be seen on a pullback is 32.98 but a drop down to $31 and even down to 29.72 are definite possibilities. The 29.72 level needs to be considered major support and in looking at the weekly charts likely to be seen sometime over the next few weeks or couple of months. Risk/reward ratio on the trade is at least 5-1.

My rating on the trade is a 7 (on a scale of 1-10 with the strongest probability rating being 10).

AOB (Friday close at 11.15)

AOB had some very indicative closes this past week and now seems poised to drop. Friday's weekly close at 11.15 was exactly at the same price as the weekly close in March 7th and May 14th and is a major pivot point on a weekly basis for this stock. In addition Friday's daily close at 11.15 suggests a failure to follow through to Wednesday's daily close at 11.59 which was above the previous two high daily closes since February's big break which were at 11.50 and 11.53. By closing at 11.15 that possible breakout was erased.

There is no support of consequence until the $10 level is reached. Below 10.00 there are a few minor support levels between 9.40 and 9.60 but the major support level in AOB is down at 8.40.

Sales of AOB at Friday's closing price of 11.15 and up to 11.53 should be instituted using a stop loss at 11.93. Objective of the trade is 8.40, which offers a risk/reward ratio of 4-1. Using the 10-minute chart, if the stock is ready to fall the, 11.32 level should now act as decent resistance. If not ready to fall then a rally up to 11.60 could ensue. Either way the chart seems to be at an attractive and clearly defined level where to institute a short position.

My rating on the trade is a 6.5 (on a scale of 1-10 with the strongest probability rating being 10).

RMBS (Friday closing price 19.11)

RMBS is a stock that I purchased in the low 13's looking exactly for the rally that has been seen over the past few weeks. My main objective to the upside has been reached and I believe that RMBS is now ready to move back down. Last week's weekly closing price of 19.32 was exactly at a strong area of resistance and this past weeks 19.11 weekly closing price (lower than last week) has confirmed the resistance is still there.

RMBS staged a strong rally from a 52-week low at 12.05 up to this past weeks high at 19.60 where it has encountered previous strong resistance. The stock is severely overbought and only saw one small $1 correction on the way up. In addition a gap was left back down at 14.05 that will likely act as a magnet if the stock gets back under selling pressure.

Resistance is very strong on a closing basis between 19.25-19.50 and between 19.48-19.60 on an intra-day basis. Support is now seen at 17.46-17.80 and the 20-day MA is currently at 17.28. Drops down to those price levels are likely. Below 17.31 there is no support until 15.46 is seen. At that price the 50-day MA is currently located as well as 3 previous weekly lows and 2 weekly highs.

Sales of RMBS at Friday's closing price of 19.11 and up to 19.48 with a stop loss at 19.75 and an objective of 15.50 will offer a 7-1 risk/reward ratio.

My rating on the trade is a 7.5 (on a scale of 1-10 with the strongest probability rating being 10).

INTV (Friday closing price 9.38)

INTV is a stock I recently liquidated at a profit off of a long position. INTV is at an area of major weekly congestion and its highly unlikely that it will be able to get above that congestion without some strong positive fundamental news. It is highly likely that the stock is now in a trading range and Friday's close near the top of that trading range gives an opportunity to short the stock with a very evident limitation of risk as well as a good risk/reward ratio.

INTV, on a daily closing basis, has major resistance between 9.31 and 9.48 and on an intra-day basis between 9.50 and 9.60. Support is strong at 7.72 and then again at 7.29. It is likely that INTV will be trading in that range for the next few weeks if not months and "trading the range" seems to be the way to go.

Sales of INTV at Friday's closing price of 9.38 and up to 9.60 using a stop loss at 9.75 and an objective of 7.72 will offer a risk/reward ratio of at least 4-1.

My rating on the trade is 7 on a scale of 1-10 with the strongest probability rating being 10.