No New Short Positions For Wednesday’s Stock Market Session

After another very powerful one-day explosion higher, obviously there were not many shorts. But the fact that there were some stocks in the shorts scan was a bit shocking but just in case you do not have Telechart (why not????? ). CLHB, BWLD, THOR, RNT, and VR all made there way into the scan of troubled stocks but none could be new shorts because stocks like CLHB, BWLD, RNT, and VR have tails on their candlestick charting patterns. This indicates that they do have somebody coming to support the stock even as they selloff on a big up day. Also for those that do not know stocks like BWLD and RNT would not be safe shorts because they are so far away from their 50 day moving average that a normal oversold rally could produce some large pain before it stops. VR would not be a good short because there is no previous big uptrend that it is coming from to be a candidate. CLHB is a better choice right now but it needs to continue to move slightly up to sideways on weak volume and then fail at the 50 and 200 day moving average area with a close near the lows of the day. If CLHB can produce that weak of a setup, after a 2,200% rally from the October 2003 lows to the August 2008 highs, it would be a great short possibility. The last stock in my list is THOR and it just reversed from a possible bullish setup so it would take a few weeks to a month-plus to get the price, 50 DMA, and 200 DMA to all converge and setup in a good possible short pattern. So even though there is nothing now, maybe CLHB could be one in the future. All you can do is fully prepare yourself by knowing your history. And I sure hope all of you that read me can tell I really know my stock market history VERY WELL. Nobody is ever right 100% of the time but if you know how to find the big winners and cut your losses short you could bat .300 (3 for 10) and still make good money. I try to put my average around .500 in bear markets (minimum) and .750 in bull market. So not only do I usually get more right than wrong, the stocks that are right make a lot more money than the stock that are wrong. As I was discussing with a smart new subscriber it is all about understanding proper money management via being disciplined and knowing ALL of the odds. Never stop learning. If you do, you will surely fall behind.

new short positions: none

none