It was a very bearish session today with most indexes down anywhere from 3% to 4%. The only good news about the selling, today, was that volume was lower than the day before giving the market a reason to maybe not fall off a cliff. However, I want to remind you unless you see heavy volume accumulation days with leading/hot stocks making nice bases on the way down with the lower volume, there is no reason to think that the low volume is good news just yet. Right now, the market could selloff for months on lower volume if it wants to. All you need to not have are buyers and bids. If buyers and bids disappear, just a little selling will crush a stock. While we do have a new short tonight with a lot of potential reward to risk ratio, I want you to notice that BOP has gone from very red to yellow. Unless BOP turns down and goes back to being red, I will not handle the stock just moving nowhere to slightly up. Positive BOP and an up day with volume would be a partial sell. Hopefully the red BOP increases. Even though it was ugly out there today the scans were a little dry because most stocks are SO FAR extended from recent highs that they do not make safe shorts. Some that are still in a position to be shorted include STRA, IBM, RE, ONXX, WST, VRX, ITT, GWW, ETP, ACGL, PJC, AFAM, SNA, GR, RBA, CF, DB, AGP, HUM, UNH, HOC, HRS, RY, and ITRI. Keep an eye on these for a low volume rally to the 200 day moving average followed by a break on heavier volume with red BOP and a near LOD or a LOD close. Remember cash is still king, shorts are queen, and gold is golden! Aloha.
new short position: GMCR
GMCR is putting in a nasty intraday session breaking down through the 50 day moving average and coming cents from breaking through the 200 day moving average. Cut your final loss with a close above the 39.99 level, if the stock does not move lower immediately.
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