Marketgrind Financial Blog

While I do like natural gas as a long I think the equities could be overbought.  Take a look at XTO.  This thing is bumping up on the upper band of a downtrending channel and has already failed to rally while the market was up today.  Furthermore, the stock is getting up into the range of the previous bottom where all the would be bottom pickers are waiting to unload as the stock comes back up into the range where they bought it.  I call that the “dear god please let me out range”.  In addition to that the Force Index is reading slightly overbought and is peaking in a range which in the past has proved to be a short term top.  I think you can short this thing right here with a stop at yesterday’s high or slightly above it.

XTO short