There were only 14 stocks in the high priced stocks that were down and not a single one fell on higher volume. That killed any opportunity to go short any proper breakdown as heavy volume is needed to enter any short and have high odds on your side for success. As for stocks breaking down right at the perfect point, if they are doing it without volume, your chances of a short squeeze against your position increases dramatically. There were only 3 stocks in my short scan and one was DELL. the lack of quality stocks breaking down on heavy volume has to do with the market and the lack of the market moving at all since January. We need the market to fall on heavy volume to go short stocks safely. We made good money from November to January as the market fell 20%-plus on strong volume. If we can get another move like the then we can get another great short. Until the CASH IS KING as there is nothing setting up properly. Remember Jesse Livermore and Gerald Loeb made it very perfectly clear about trading for the “sake of trading.” It is a fools game and is a sure way to the poor house.
“Profits can be made safely ONLY when the opportunity is available and NOT just because they happen to be desired or needed …Willingness and ability to hold funds UNINVESTED while WAITING for real opportunities is a key to success in the battle for invesment survival.â€â€“Gerald Loeb
new short positions: none
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