Goldman: Readying Short Position Initiation Sequence

Each weekend when I do my big search for stock market ideas, my first search is by relative strength and weakness. I of course notice this during the week as well, but I try to really key in on names of stocks, sectors and groups on the weekend for further study.

On July 30th the market had what technicians refer to as a 'follow-through day', which is simply a strong rally on heavy volume at least three days after a market bottom is put in. It should ideally occur between days five and seven, and although this one occurred on day ten, it's still not something to ignore. In my case two things happen when follow through days occurs. First and foremost, I get out of my shorts. This is important, because while a follow through day certainly is not a promise of a bottom, no market bottom of any significance has ever occurred without one. I next will look at what sectors