Despite the big losses in the stock indexes today there were two key events that prevented us from receiving any shorts to take in our scans. The first event was the overall low volume today. That prevented us from having the surge in volume that is needed for when stocks breakdown so that they can continue to breakdown. The second event was the end of day rally that took the indexes well off their lows and gave them the appearance of a slightly bullish session as a low volume selloff was contained by bargain hunters looking to come in at the end of the day and snatch up perceived bargains. Despite the late day rally, we still did not have any of our 34 shorts suffer any major reversal that called for them to be partially or fully covered. This keeps us still in a good position to profit if the market decides to fail here during the holidays and post holidays. Selling off on low volume during Christmas is not bad as long as we are followed by heavier volume buying in January. However a weak Christmas with a weak January would be very bullish as it is usually a bullish time. Even without any new shorts there are some stocks breaking down that need to work on setting up in a proper short pattern before we can actually go short. TEVA, SINA, AXYS, MDC, PPG, and SLG with more low volume rally work to key resistance would make all of these great near-term shorts. Merry Christmas and Happy New Years!!
Remember, there are only nine more days to receive the 25% off holiday deal for a monthly or yearly subscription. This deal will not be happen for at least another 12 months, and that is only if other financial websites are doing this, so make sure you take advantage of it now. When this market turns you want to make sure you are going long what I go long so that you may also benefit in the huge gains (see Past Big Winners) that we will have in the next uptrend. One good long, like CSKI, or well timed short, like CETV, can pay for the annual subscription within weeks to months.
new short positions: none
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