Two to Watch

This article originally appeared on 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.

STOCKS TO BUY: TheStreet Quant Ratings and Dave Peltier's Stocks Under $10 has identified a handful of stocks that can potentially TRIPLE in the next 12 months. See them FREE today... Click Here NOW.

I have my eye on Sturm Ruger  (RGR)  and Royal Caribbean Cruises  (RCL) , but (and it is a big but) I want to see how both names close since they've been fading a bit with the market.

If you liked this article you might like

Unearth This New Relic Trade

Symantec CEO Clark Not Ruling Out Another Deal

3 Reasonably Valued Tech Stocks That Are Worth a Look

3 Reasonably Valued Enterprise Tech Stocks That Are Worth a Look