The XLK has been losing upside momentum on an absolute basis and has recently broken its relative performance vs. the S&P 500. Our multi-factor technical model has been picking up this deterioration in recent weeks, where the score has gone from a top level of +10 to now at +5.30. The Software group, as measured by the iShares (IGV) ETF, has been deteriorating at a rapid pace with a decisive break of its relative performance line and a weakening of its model score. We recently shorted COUP in that space.

The consumer discretionary sector had a large step size move up in our multi-factor model ranking from the prior month. We see this for both the U.S. and global markets.

We pointed out in our March 16 Technical Tuesday report that we were seeing a good recovery in the SMH and to selectively add to the group.

We are getting good follow through on the shorts we recently put on, and would be adding here. For those that are initiating now, it's not too late.

Just like watching paint dry....it looks like the turn is taking hold. I noticed today that stocks such as DHI and KBH had their widest range down today and off 3.9%.

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.

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