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.
Ultrashort Plays: ProShares UltraShort Finanials ( SKF) and UltraShort Real Estate ( SRS) 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). Medarex ( MEDX): This biotech play rising on positive prostate cancer news. Upgrades: Ameristar Casino ( ASCA) and Waters ( WAT) are rallying on analyst moves. Well-Known Names Bucking the Downtrend: Coach ( COH), Visa ( V) and KB Home ( KBH).
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. Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system.