This is one rough market and it is becoming clearer and clearer that this rally probably will not hold. That is clearly shown via my recent longs breaking out and reversing immediately. Stocks don’t act like that in bull markets. So it appears the bear is alive and that is why our long term shorts are still holding their positions as the proper play. While it will not be easy (as you can see via STRA) shorting is still obviously where the money is going to be made. So we have two new shorts to take advantage of a probable turn lower.
new short positions: LMNX PRSP
LMNX is putting in a nasty intraday reversal breaking down at the 50 and 200 day moving averages, 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.
PRSP is breaking down at the 50 and 200 day moving averages, closing near its LOD, on 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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