There were still around 40 shorts in the scan, despite the strength in the stock market today, which seems kind of odd. However, not a single one setup in a safe pattern to go short and after watching the three extremely tiny short positions not immediately move lower it is apparent to me that it is not the time to short even the stocks that are being rotated out of. I completely am going to cover the GEO short and I will hold the other two short positions still as they are still looking very weak. I now am back to under 10 short positions and there are about 5 of the 9 that with one more strong move higher will be complete covers. The bottom line is that it is never smart to short a dull market and it is even more ignorant to short a market rallying on higher volume. Volume is starting to come in above average on the Nassy and that along with all the stocks in my Featured scans building bases I think it is safe to say those that are helping raise that NYSE short interest ratio to its all-time highest level of 12.56 are definitely the dumb money. It doesn’t help that market players get scared as the indexes rise. The put/call rose to .88 from .81 today. To me it is clear that even though the crowd may say they are bullish they are still trying to short the rallies. Never short a dull market and DEFINITELY never short a market rising on higher volume like the Nassy is STARTING to do. Be careful out there if you have a compulsive shorting complex and make sure you cut your losses immediately if the short does not work.
new short positions: none
none
