This article originally appeared on RealMoney.com on Sept. 3, 2014 at 12:26 p.m. To read more content like this AND see inside Jim Cramer's multi-million dollar portfolio for FREE... Click Here NOW.
Fades don't come easily these days. We have seen big turns from green to heavy red in a few momentum names this morning, including Splunk (SPLK) , Twitter (TWTR) and FireEye (FEYE) , so a change of character worth noting. But calling tops in anything has been tough. There's no reward for calling a top. Sure you could get a maximum profit, but you will be taking the maximum risk. A day like today, however, should encourage a few more folks to start looking lower.
Admittedly, I did make a similar call with my short in the iShares 20+ Year Treasury Bond ETF (TLT) last week, but that was based on a trading pattern rather than trying to call a top. Fortunately, it has worked well, as TLT has retraced from above $119 to the mid $116s, giving me the chance to liquidate 80% of my short position. It should be noted, though, that I did get dinged with the dividend there, so the overall gain was a 20 basis points lower.
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Sturm Ruger is trying to turn higher after a disastrous end to the month of August.
Royal Caribbean Cruises has a fantastic cup-and-handle pattern targeting $68. The key will be the stock holding $64, although any close under $65 today is going to be a bit troublesome as a bearish candlestick pattern is likely to print. My guess is that a shooting star could develop. If we see that, then I'll wait.
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