Lehman Bros. (LEH) raised $ 6 billion in new capital to shore up its balance sheet after suffering $ 2.8 billion in losses.  However as today's price action shows even in the face of this seemingly good news LEH shares are selling off and still on a new FusionIQ timing sell signal.

Tech issues have been acting stronger than the broader market for a few months now.  This looks like a rotational trade out of commodity sensitive issues, which have been leading for several years and back into techs.  In that vein the Powershares QQQQ, a tracking stock for the 100 largest issues on the NASDAQ and a great proxy for techs, remains on its’ FusionIQ BUY signal from May 1^st (see chart below)

Please find in the table below a great example of how FusionIQ’s custom screener can produce targeted trading ideas.  In this screen which we have run on this blog several times we use FusionIQ’s powerful custom screener to find stocks that are on new FusionIQ timing BUY signals but have traded above average volume relative to their 12-day average volume flow.  The screen in essence is looking to see where aggressive institutional trading is occurring.

Today, our Large Cap Sell Screen identified Lehman Brothers (LEH) as a Sell. It has a current master score of 33 (out of 100) and has an abysmal technical score of 17.  It went to a sell signal back in March around $52, and two weeks later, traded as low as $20.25. It recovered somewhat, flipping to neutral around $44.  

Its now back on a sell signal, with a $20 price target. .

The MidCap Sell Screen found a smaller financial: CIT Group (CIT). It also went on a Sell. Same set up as Lehman Brothers: First sell signal was in March about $16, fell to $6.45 a few weeks later, back to a neutral a month later.   Now, CIT is back on a Sell/Short rating, with a target about 30% lower.

Traders who short stocks should always work with stop losses. The financial sector, with outside investors, have been very volatile, with squeezes occurring regularly.

Please find in the attached table a list of above average volume BUYS cultivated off the FusionIQ custom screener.  This screen looks to find stocks that are on new FusionIQ timing BUY signals but are moving up on above average volume a sign that institutional accumulation (a driver of equity prices) is building.

Back in February we published a blog post on Walt Disney (DIS) after Barron's wrote a glowing story entitled " The Magic is Back " about Walt Disney and its prospects for the future. We said back then that Disney's FusionIQ ranking was only a 58 out of a possible 100 and that at this point with only a 58 ranking it is still a bit early to believe the magic is back for good. We then suggested the best plan of attack was to wait for its FusionIQ rank to move back into bullish mode again by seeing its ranking score move back to 70. 

Well for the first time in several years DIS is back to a FusionIQ score of 70. That said we now concur with Barron's that Disney may indeed be back !