It was nice to see the market hold up today and not plummet past the November lows as it was looking like it was ready to do ASAP. The rally is only good news for shorts for one reason. Most shorts are way too far extended from their recent highs and/or the 200 day moving average to make a good short. Therefore, what we need to make money on the short side in the next few days to weeks is for a low volume rally with weak BOP leading to a failure either near the old highs or the 200 day moving average. If these stocks that we are watching can rally on low volume, fail at the 200 DMA on heavy volume, close near the LOD, and does it with either negative or better yet red BOP it will become a new short of ours. Today, everything had bullish intraday tails left on the daily charts so nothing is good enough for me to go short. Some stocks I am watching for new shorts include TAP PTR IT PPDI BNI TMK TDY VAR NSC CBSH UBSI ARD CMP SOHU HUM COP JPM and MA. Remember, almost every single one of these stocks that are on my short scans are too extended to be a short. So don’t think that you can cheat and take a short now. You will end up having a painful reversal on your hands, more-than-likely. Our current short positions are all still working well. The only one that I am watching for a possible full cover is RIMM. RIMM had a strong move today, with volume and green BOP. We need to watch it for a possible final cover call. Remember, RIGHT NOW, at this moment, holding cash is the right move. A few longs and a few more shorts are OK but I really must stress that CASH IS KING!
new short positions: none
none
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