After going over 98 stocks in one of my four scans it is clearly obvious that 95%+ of stocks that are in a downtrend are so far beyond their 200 day moving average that almost none of them are good shorts. They are all way too far extended from the 20 day moving average. Any of these stocks and ETFs have to be avoided as you are welcoming yourself to a risky pullup like what happened today in EPIQ. Unless you do what I do when I short (which is the right way to do it) you will have difficulty making money. Right now, a lot of my subscribers are asking for shorts. Why? You can’t go short anything this far from the 200 DMA. The good news is that we do have some stocks dancing around the 50 and 200 DMA that make these good possible short positions. These stocks include, in today’s scan, STRA, IBM, GR, BKC, YUM, TRI, FEIC, EGP, HOC, NTES, WLP, ASF, INT, LMT, AMED, VRX, LHCG, PNW, CMP, MRK, SHPGY, FAF, WLP, INT, ODFL, and FSLR. Watch these stocks for low volume rallies to their 200 day moving averages and if they breakdown on heavy volume, close near or at the LOD, do it on strong volume and especially red BOP do not hesitate going short. Cash is still king!
new shorts: none
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