We had a Christmas Eve half-day session today and that meant not a lot of action at all. There was one stock in my short scan and it was ATK. ATK was an old short in September but I covered it all in October after a huge up day on strong volume. Since it was not above the 50 day moving average, I should not have covered it all and now believe I will pay for it as ATK looks ready to rollover again. Even though that short has gotten away, there are still a few high priced stocks left out there that I would like to get short if this market stays weak and they can get to their downtrending 200 day moving averages. The 25 stocks that are above 100 a share that remain are MKL ISRG NVR WTM GOOG CME ALX MA SEB STRA AZO ARDNA Y WOP FFH WSC TRIN MITSY BLK BIDU BRKB ATRI FSLR BRKA NWLI. Every stock that I went short that was over 100 a share back in the fall produced gains for me. Only a few were covered and they are still on this list. ISRG, GOOG, CME, STRA, AZO, BLK, BIDU, and FSLR are the eight stocks that I really really want to get short. So as long as we rally on low volume and the low volume rally doesn’t turn into a high volume rally, I will be waiting to go short these “expensive” stocks. The most expensive stocks are the second best shorts as they have normally gone well beyond reasonable valuation and in a bear market get major corrections. The best shorts are of companies that we know have major financial problems. If the company doesn’t make sense, is losing money, and the stock is in a downtrend, looking and waiting for the right moment to go short is by far the best way to hit home runs on the short side. I hope everyone has had a wonderful Chanukah and I wish everyone a VERY MERRY CHRISTMAS on Thursday. Merry Christmas!
new short positions: none
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