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.
Treasuries ( TLT): 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. 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).
High-Beta Plays:Intuitive Surgical ( ISRG), Green Mountain Coffee Roasters ( GMCR) and First Solar ( FSLR) trading sharply lower. China Tech/Internet: Baidu ( BIDU), Shanda Interactive ( SNDA) and Netease.com ( NTES) are all getting hit hard. Financials: Goldman Sachs ( GS) and JPMorgan Chase ( JPM) leading financial gauges trading lower. Transports: We're examining railroad, airlines, truckers and package-delivery plays all weak. Watching Union Pacific ( UNP), FedEx ( FDX) and C.H. Robinson ( CHRW). Internet Giants: Google ( GOOG), Priceline ( PCLN) and Amazon ( AMZN) all trading 4% to 6% lower. Commodity Stocks: U.S. Steel ( X), Freeport McMoran ( FCX) and CF Industries ( CF) are all getting crushed. Oil ( USO) and Gold ( GLD) are also very weak in afternoon trading.
In trading on Thursday, shares of the ProShares UltraShort Financials ETF entered into oversold territory, changing hands as low as $50.7799 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100.