The markets are getting hit very hard and traders may want to prepare for further weakness. Let's take a look at what is working and what is not.
: As equities get hit hard, the bond play is looking good again. I talked about this on Friday. Move up your trailing stop as this ETF rallies.
ProShares UltraShort Finanials
UltraShort Real Estate
are also carrying through with gains as well and these two plays are acting very well. We would also move up our trailing stops here, but give yourself some room from current levels (minimum 50-cent cushion).
: This biotech play rising on positive prostate cancer news.
are rallying on analyst moves.
Well-Known Names Bucking the Downtrend
Green Mountain Coffee Roasters
trading sharply lower.
are all getting hit hard.
leading financial gauges trading lower.
: We're examining railroad, airlines, truckers and package-delivery plays all weak. Watching
all trading 4% to 6% lower.
are all getting crushed.
are also very weak in afternoon trading.
Traders may want to keep stops in firmly here. One of our "aggressive" dividend stock recommendations from last week is also getting hit hard, but we would wait before adding to the position. The UltraShort plays are looking good and we would stay with those plays here.
We are continuing to expect weakness for a little bit more, but there will likely be an end-of-month reprieve higher as fund managers try to polish up the second-quarter portfolios with some last-minute purchases. We'll keep you posted so you do not overstay any short-biased bets.
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At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.
Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.