The first four shorts on tonight’s list of shorts have my typical historically high odds short patterns that I have been going short since October. Let’s not forget that I was taking shorts a month before the actual top. So by using my charts I was actually able to anticipate the top. Sadly, I was about two months late in anticipating the top and missed the ABK PMI MTG MGI shorts. But whatever; there are still some people that think GOOG and AAPL are great longs right here. ISRG and RIMM are two bull market leaders that should be great shorts in this bear market. They both are very close to cracking, with RIMM appearing to be just a few days away from breaking down and ISRG rolling over with volume finally starting to pick up. So all of the candidates tonight are really good and have great reward to risk ratios. These setups were created thanks to the minor drift higher to sideways the past five weeks plus on the indexes. Now that the indexes are selling off and these stocks are cracking, it looks like we are ready to start the third leg down (1st: November, 2nd: January, 3rd: now). Newbies, you shouldn’t even think about shorting, if you don’t yet already have a history of producing consistent gains on the long side of your operations. Experienced investors…have a ball! If this market is going to crack wide open, now is the time to get short. Just don’t short the stocks already too extended like GOOG, AAPL, or CBEY. That is called chasing; that is what amateurs do. We are not amateurs.
new short positions: BNS ANF RGA XOM ISRG RIMM
BNS is breaking down below the 50 day moving average, after failing to get back above the 200 day moving average, on extremely strong volume. Cut your loss with a close above the 50 day moving average, if the stock does not move lower immediately.
ANF is breaking down below the 50 and 200 day moving average and closing one cent off the LOD, on very strong volume. Cut your loss with a close above the 50 and 200 day moving average, if the stock does not move lower immediately.
RGA is breaking down below the 50 day moving average, after failing to hold above the 200 day moving average twice the past two months, on strong volume. Cut your loss with a close above the 50 day moving average, if the stock does not move lower immediately.
XOM is breaking down below the 50 and 200 day moving average, after failing to hold above the 50 and 200 day moving average, on strong volume. Cut your loss with a close above the 50 and 200 day moving, if the stock does not move lower immediately.
ISRG is failing at the 50 day moving average, after failing to hold above the important moving average, on strong volume. Cut your loss with a close above the 50 day moving average, if the stock does not move lower immediately.
RIMM is breaking down below the 50 day moving average, after failing to hold the important moving average, on average volume. Cut your first loss with a close above the 50 day moving average and your final loss with a close above the 111.50 level, if the stock does not move lower immediately.
