Friday's rally in the broader averages may be a short-term (or very short-term) respite to the selling instead of a tradable bounce. Even though the S&P 500 and the Nasdaq closed at the highs of the day, there were some dark clouds to the silver lining. The SOX index, which has been one of the best precursors to market movements, closed mid-range.  More importantly, some of the big names in the semiconductors closed at the low end of their ranges. So this will put the semis on my radar to short on a weak bounce.

So how will I play this?  My plan is to do what I do best, which is let the trend be my friend and sell the weakness. One of the areas that seems ready to continue its downtrend is the telecoms.

Notice that Motorola (MOT) is trading below its 50-day moving average and Friday's lack of follow-through to the upside tells me that the downtrend is ready to resume.  I will look to short below the low from Friday around $19.80.  If filled, I always use a protective stop.

Motorola

Arris Group (ARRS) is also in the telecom group.  It is similar to MOT in that it is trading below its 50-day moving average and the bounce from Friday seems to have run its course. What I like about this is the amount of volume on the sell off Wednesday and Thursday. Again, I look to short below Friday's low.  If filled, a protective stop is critical.

Arris

As I mentioned earlier, the semis are getting ready to roll over.  I'll keep you abreast if any of them resume their downtrends. This is a very choppy market at best, and with rising interest rates and the wild card of oil prices jumping all over the board it is essential to use stop orders.

Tom Incorvia is a swing trader with 18 years of experience in the financial markets.  E-mail him at tincorvia@gmail.com.