A mixed session on much higher volume, due to options expiration, left my scans with over 10 stocks each for the first time in what seems like six months plus. This gives me confidence that maybe some stocks are indeed trying to build a bottom out there. Even though there are no charts out there that are extremely beautiful, there are a lot of stocks that look to be building a bottom. Still, this market is not out of the water, and besides ATHR there still have not been any full covers from any long-term winning short position. Since these stocks are still in solid downtrends, I feel like the odds are still in my favor to take some short positions. Now, granted, a lot of the recent shorts have not worked and we have had to cut our losses. Still, just as many are working that are failing so as long as the shorts that work make more for us than the shorts don’t work we will be in good position. If these shorts fail I still wouldn’t get that upset because that only means that soon the stock market should be moving higher and you can’t get 3,000% returns in a short position. If the short works, great! If it doesn’t work we can cut our loss and hopefully some hot longs show up to make up for the small loss. Either way, we have a battle plan, and that is what you need in this market. You definitely can’t say I am not prepared. No matter what happens, I am ready. Other stocks I am watching for possible future shorts include OGE, CPB, FMER, CTAS, PNY, STE, GAS, PNR, TSCO, MASI, and FE.
new short position: CFR
CFR is failing right below the downtrending 50 and 200 day moving average, after failing to hold or get above the averages on four separate occasions, on very strong volume. Cut your final loss with a close above the 50 day moving average, if the stock does not move lower immediately.
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