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

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.

The last time we wrote about the solar group was in March of this year as the Invesco Solar ETF (TAN) emerged from a multi-year base.  That ETF and a number of the stocks in that group continue to look very good on an absolute and relative basis, and some of these stocks have high short interest.  

We have a bullish setup in FDS as the stock is emerging above a three-month downtrend with improving money flow.

Here are a couple of ideas within the software group.

I put together three pair trades within the semiconductor group.