The Fast Money Guys Versus The Market Speculator

The Fast Money guys are hot on the financial sector, with Guy Adami specifically pointing to Morgan Stanley as a valuation play. I, on the other hand, am bearish on the sector and currently short Morgan Stanley.

There is no way a true technician could enter MS from the long side right now. Take a look at the chart. Price, OBV, RSI and stochastics are all trending down. To make matters worse, the current bounce is still under the 200 day moving average, with the shorter term 50 day moving average pointed downward and looking ready to cross below the 200 day. These are all bearish extremely bearish signals that make the current bounce the perfect shorting opportunity.

Get Ready to Short the Bounce

Hopefully this bounce can last another day or two. I will use market strength tomorrow to deploy a few short plays. A lot of sectors are setting up the same way, so I'll stick to QID and a few select sectors and stocks. Financials, commodities (not oil), tech and China stocks head my list of short plays off bounces.

I like QID here or if it falls into the $54-55 range.


MS looks good on strenght into resistance. It would require a loose stop above the recent gap level.