There is only one new short tonight out of 37 short candidates in my two short scans. This one has been constantly showing up in my scans and I have taken a stab at this one before. So obviously I am becoming very familiar with this stock. Usually stocks that show up on my scans repeatedly before their breakout or breakdown are some of my better trades. Hopefully, this situation will be no different as I will attempt to kill WG again after seeing it in my short scan for the seventh time this month. That is a lot of times to show up in a short scan in a month. That can’t possibly be good for this stock. However, with the market still in a very short-term and sub-intermediate term uptrend, there is no way we can load up on any short here. So for those of you shorting the market heavy today after the failure just remember today’s volume was lower than the previous two days. There was a lot of bad news today and, even with that, stocks still did not break hard on heavy volume. Be careful out there shorts. I have 47 short positions that represent only 9.6% or my portfolios and over 65% cash.
new short position: WG
WG is failing before even reaching the soon to be “death crossing” 50 and 200 day moving average, on very strong volume. This stock is loaded with distribution, poor price action, and red BOP since the top in November. It has only gotten worse, after its third failure to get and stay above the 50 day moving average. It has only been 4 1/2 months since the top in November but the way the chart looks it has been long enough. The distribution that has entered the stock since 2/28 has been very heavy and BOP is even getting more red after today’s reversal. This chart is getting very red, ugly, and the 50 DMA is about to cross the 200 DMA to the downside giving the chart its official “death cross.” This stock is going to have a very hard time gaining any ground with the amount of distribution that we have seen in November, January, and March. Cut your final loss with a close above the 50 day moving average, if the stock does not move lower immediately.
