I am a little surprised that with today’s low volume that we actually have a new short. The new short may appear a bit extended from the 200 day moving average but I want you to notice how much downside could still be in store for this stock. First, look at the massive amount of distribution on the chart. Second, think about China lowering rates. When countries lower interest rates that is the same thing as saying “our economy is still in trouble and we need to cut rates to hopefully get it going.” So since China is telling us that the economy still “sucks” and this stock is clearly topping on a weekly pattern, I think it makes sense to go short a stock breaking down right at the 50 day moving average on such strong volume the past two days. Other stocks I am watching for future shorts include SINA. BWP and CVO would also make good future shorts but sadly they do not have the previous uptrend to warrant a short position. Merry Christmas everyone!!
new short position: SNP
SNP is breaking down right at the downtrending 50 day moving average, on very strong volume (extremely strong volume on a 2-day chart). 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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