It was an ugly day in the market today and this time the selloff was a follow-through to a previous selloff and it did come on higher volume. So chances are that the market is not going to give us the low volume rally we need to go SAFELY short some of these stocks. Instead we will have to be happy with our current 37 shorts and continue to be happy riding them lower, while we wait for a beautiful setup like RNT to come along again. RNT acted perfectly today and is the kind of setup that I am always looking for to make BIG GAINS on shorts. The only item (of course, there is always something) that was a problem was the fact that BOP did not hit the red level and was instead just yellow. But since it was negative BOP after a series of positive BOP it was good enough. That helped give us an immediate 5% return on RNT as soon as we went short and that is how it is supposed to be almost every time I go short. However, this market has done its best job of driving everyone crazy and is trying to get me to reach that level also. Too bad the market doesn’t know my will very well. I know history, unlike most, which the stock market DOES KNOW, and can wait out these horrible times by taking small gains along with small losses until we get the perfect acting and working stocks that I was used to from 1996-2006 (2007 started to see a mix of perfect charts working/failing). Even in 2007 we had plenty of big winners like MTL 90%, AFSI 88%, TESO 80%, DRYS 100%, FSLR 250%, and APPY 120% just to name a few. But in 2008 it definitely turned MUCH HARDER as we had only one VERY SHORT and VERY WEAK uptrend that allowed us to make money from March to May. Besides that it has been a very unhealthy mix of failed breakouts and some breakouts that work both on longs and on shorts recently. Before September and after May, almost EVERY short we took worked! But since then it has definitely been a mixed bag of stocks that work and stocks that fail. Hopefully, RNT can restart the trend of shorts breaking down on heavy volume and working IMMEDIATELY. We will see. Some of the stocks I am watching right now for possible future shorts include KR, MLM, ARG, CVD, ABFS, CLX, CP, CAT, RE, CPO, L, ROK, SFG, CTXS, WYNN, and FO. There are other stocks I am looking to go short and you can find those in the past “no new short positions” post the past week. Remember, no matter how you “feel,” CASH IS KING right now!
new short positions: none
none
Comments are closed.