Not all of the names we're looking at are bullish -- the sole short side play on our list is General Electric (GE). General Electric has had a strong year, with shares up around 21%. But this conglomerate is starting to look toppy thanks to a head and shoulders pattern, so GE bulls need to beware.
The head and shoulders is a setup that indicates exhaustion among buyers -- it's formed by two swing highs that top out at around the same level (the shoulders), that are separated by a higher high (the head). A breakdown below the neckline is the sell (or short) signal for GE.
The fact that the right shoulder has been stretching out means that GE's downside setup could very well get cancelled out down the road. For now, though, this setup is worth keeping a close eye on -- particularly as long as anxiety remains the driving force for investors here. A move below the neckline makes $18 a likely price target.To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV