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

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.