The news over the weekend certainly has not been good. Given the continued geopolitical uncertainty, Julie and I continue to favor the short side of the market. That being said, the Around the Horn: Stocks to Watch list for Monday presents some interesting setups.

Arch Coal, Inc. (ACI) broke through significant first quarter support on Friday in a Fast Ball expansion of range and volume. We will have the stock on the radar throughout the session on Monday for signs of a continuation short side move to 31.20 and a possible extension to 30.50.

Arch Coal, Inc.

The beleaguered Transportation Index ($DJT or TRAN) managed a bounce at its 200-period simple moving average on Friday, and Canadian National Railway Co (CNI) went along for the ride. Unfortunately, neither the sector nor the stock managed a strong finish, and CNI will be on screen for us as a potential Fast Ball short sale below 39.60 (December 2005 support).

Canadian National Railway Co

Downward continues to be the apparent path of least resistance for the Oil & Gas Drillers, with Diamond Offshore Drilling Inc (DO) leaving a Backdoor Slider on the daily chart on Friday. As always with this group, Julie and I will wait for early trading to settle out before looking for entry opportunities in this volatile stock. We will also closely monitor Reg SHO eligible Ensco International Inc (ESV) for downside opportunities.

Diamond Offshore Drilling Inc

Ensco International Inc.

Another Fast Ball short setup we will be keeping an eye on is Advanced Medical Optics Inc.(EYE). The stock had a Fast Ball selloff through the 50-period simple moving average on Friday, and appears ready for a retest of   46.70.

Advanced Medical Optics Inc.

Adrian Manz is the author of Around The Horn: A Trader's Guide To Consistently Scoring In The Markets and is cofounder of TraderInsight.com. Email him at adrian@traderinsight.com.