Given the short-term oversold market condition and that of a number of stocks, we are closing SLAB/XLNX pair which was up +4.89%.  Closing long AIR short HEI pair for a small loss of -1.49. HEI came very close to its target and likely to pop from the oversold. AIR is getting weaker.

The S&P came down to the 2875 level we highlighted in yesterday's report which is the lower end of the regression trend channel and a MFU-2 target. When an MFU-2 target gets hit, it typically leads to a decent countertrend move. Because we don't know the magnitude of a "pop" up, we think its worth a shot to cover our short and go long for a tacticall trade. We will reverse the trade on a move below 2875 and then target the MFU-3 level at 2818.

We would be covering shorts in WTI Cruide Oil and put on a tactical long with a closing stop at $51.

KSU is into a Make or Break (MOB) target band and has stalled out on a momentum basis. Although the long-term trend is up, we can see risk to the $125 area short-term. The stop is tight, so if it's going to work, this is the spot for it to put it on.

Short Waste Mgmt - WM. Target Price $110.00 (4.13%)

Short HEI. Target price of $116 (or 8.86%)

Would short here and any near-term strength toward $65.80.

The drivers for the idea are: 1. Strong multi-factor model score for GOOG vs. FB. 2. Weak technical structure of FB as it breaks its one-month uptrend

Two drivers for the idea.  1. Strong multi-factor model score of EBAY vs. ETSY. The relative performance of EBAY vs. the S&P 500 is a heavy weight in the model.  2. ETSY has rallied into an area of overhead supply/resistance, and is overbought short-term.

The driver for the idea is the weak technical structure of TWLO. ORCL looks favorable for a near-term move up as well.

COHR triggered a buy signal this morning and looks like a good spot for a long trade. I like that it has shorts behind it as well. The ratio chart below is in a good spot to put it on.

Pair trade ideas in the Semiconductor Group

I was reviewing the industrials sector and JCI scores very well. On the opposite side of the ledger, MMM very weak. I like the way this pair is setup and see about +10% from here.

Here are a couple of ideas within the software group.

The weekly buy signals generated last month for a number of U.S. indices remain in effect. The Russell 2000, Mid-Cap (MDY) and Dow Transports have had a strong rally, and into resistance areas that are likely to result in a pause/pullback. Long-term trends remain favorable.