Today's selloff certainly has the feel that it will stick, in contrast to yesterday's early pullback. Be prepared, as many trailing stops and sell-stops will likely get hit, which isn't a bad thing, considering how great the long side has been lately. Let's see what names are jumping out this afternoon.
Earnings Winners: Masco ( MAS), Coventry Health ( CVH), Textron ( TXT), Checkpoint Software ( CHKP), and Capella Education ( CPLA) are leading the charge higher. Treasuries ( TLT): Big day for bond bulls as rates drop on lower consumer confidence numbers.
Earnings Losers: Plum Creek Timber ( PCL), Coach ( COH), National Oilwell Varco ( NOV), Interpublic Group ( IPG), Anixter International ( AXE) and FPL Group ( FPL). Analyst-Downgrade Losers: Metlife ( MET), Lennar Corp ( LEN), Agnico-Eagle Mines ( AEM) and Kinross Gold ( KGC). Oil ( USO) & Gold ( GLD): Both are selling off hard today as are commodity plays like Freeport McMoRan ( FCX) and BHP Billiton ( BHP). Other Notable Losers: Goldman Sachs ( GS), Apple ( AAPL), Baidu ( BIDU), First Solar ( FSLR) and Google ( GOOG).
What's the Trade?
AEM and X were both good short plays mentioned in this morning's playbook. AEM is already nicely in the money for traders who took at shot at that one. My plan would be to hold the X short if the stock can close under the opening print, as I would anticipate some follow-through selling tomorrow. If both names really sell off hard, I would take some off the table prior to the close. Also, keep an eye on the Ultrashorts (SKF, SRS, DUG) I mentioned this morning as long plays. Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system.