The market decided to give us a break this long three-day weekend (Martin Luther King Jr. Day) by not giving us any new short positions. That shouldn’t shock anyone that watched the market on Friday. The big intraday reversal ensured that we would not have any new short positions as every stock in all of my short scans (four scans) did have a big giant bullish tail on their candlestick price charts. This tail shows that in the short-term there is some support for stocks, even if it is not on huge volume. The good news is that we are not “short” of future short candidates. Some of those stocks that I have my eye on are EXPD, PTR, UBSI, PPDI, FISV, UBSI, ATR, CBU, JBHT, VIVO, CVD, CLF, MA, TAP, IT, BNI, TMK, TDY, VAR, NSC, CBSH, CMP, ARD, HUM, SOHU, DECK, MLM, ADM, BG, PRSP, HSIC, GPN, NKE, UNP, SF, SHOO, NTES, and BTI. Right now ALL of these have the same thing in common: they are too far extended from their recent highs and the 200 day moving average to be good shorts. They all need to do one thing here and that is to rally on low volume back to the 200 day moving average. IF that happens, the next step is to short these stocks on a heavy volume reversal with red BOP. NOW THIS IS ONLY IF the stock market, along with these stocks, rally on lower volume and then breakdown at these key moving averages. So there are conditions to these shorts to be shorts. They have to reverse and close near the LOD on strong volume with either negative BOP (if there is already a lot of negative and red BOP on the chart) or red BOP at the 200 DMA. This, along with the market failing, will greatly increase are chances of making big money like the last big move to the downside. If they don’t fail at the 200 DMA and instead the market continues to rally…then we will not need this area and that is fine with me. I would much rather be a bull than a bear. Why? Compare my best short returns to my top returns on my longs (in the Past Big Winner sections). I think it becomes clear why I like the market to trend higher. Have a great LONG weekend and if you have any questions feel free to leave them on the Forums or the Chat Room–I will get to them.
new short positions:
none
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