Despite both beating estimates, Apple and IBM did not blow away investors like they were expecting, and the market appears ready to open the red. Goldman Sachs, Bank of America, and Johnson & Johnson did not do a whole lot to help change that market view with their earnings this morning as well. The disappointing earnings had come after a week and a half of tremendous earnings from a number of companies, and the disappointment may push the market lower throughout the day.

(anyone remember that iPod thing…)

Currently, we have two open positions in Sallie Mae (SLM) and Huntington Bank (HBAN) with entries of 11.22 and 5.72. Sallie Mae reports earnings this evening, so we are going to be looking to get out of this one today. The stock has not bee given the best day to make a comeback as it is down 1% currently for us. We are adjusting our exit range to take a 1% gain and more. Huntington Bank was our Buy Pick of the Week yesterday, and we are looking for gains of 4-6%. Yesterday, we exited three positions in Entergis (ENTG) for 3% gain, GFI Group (GFIG) for a 4% gain, and Direxion Daily Financial Bull ETF (FAS) for 3%.

We are somewhat maxed out in positions in the Buy category. Therefore, I am going to save our Buy Pick for an Overnight Trade this afternoon, and we will lead off with a Short Sale.

Short Sale of the Day: Seagate Technology Inc. (STX)

Analysis: As I was looking through companies yesterday, I came across something I very rarely ever see…a company with an RSI above 80. 80 and 20 are the extreme benchmarks on the RSI technical scale. As a company nears 80, it is becoming well overvalued. As a company nears 20, it way too undervalued. Above 80 means a company has made such a quick move to the upside that it may be due for a pullback. That company was Seagate Technology (STX).

The company has shot up over 30% in the past two trading days. The main reason behind the push was news that the company may get a major private buyout deal in the future. Analysts estimate that buyout could be between $15 – $18. The stock soared Friday and again yesterday, nearing $16. Today’s weakness in the tech sector is about to challenge the stock and bring about a chance for some major profit…
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