The oversold rally that I was looking for in the commentary yesterday came right on time but came on HUGE volume. Therefore, I think it is very dangerous to initiate new shorts here. And the good news about that is that there have been almost zero candidates the past few days as intraday reversals have left hammer patterns and bullish open body candlestick patterns everywhere. So if you have not covered any of your shorts yet–it is time. If you have just gone short a stock and it is showing you a loss on higher volume, you need to get rid of it. One more time: be careful initiating any new shorts. I would wait till this rally ran out of steam before going short. The volume was just too strong and the possibility of a very long oversold rally is possible.
new short position: PSSI
PSSI is breaking down below the 50 and 200 day moving average, on very strong volume. This stock is not the most horrible chart out there as there is not a lot of heavy distribution or red BOP anywhere on this chart. But the stock is breaking down very clearly and the slow rollover from the top nine months ago makes this ugly enough to try a poke. Just remember to keep this very small. Newbies you should stay far away from this play as it is too risky and/or you should wait for a bit of a rally to the 18.50 area. Cut your loss with a close above the 50 and 200 day moving average, if the stock does not move lower immediately.
