It was a decent down day in the market but I continue to stress that this market has been going down so hard for so long that without a a nice rally in the general market that last at least a few months with stocks moving higher on lower volume, it is going to very hard to safely get short a stock with a high reward and low risk position. Thankfully for my scans it picks up almost every major breakdown or reversal that it is clear there are still some stocks that are in positions to short. Especially the medical, bank, and other stocks that have been short sellers dreams. The returns we have produced this year in our shorts has PROVEN that the trend is your friend in the stock market. Both of our new shorts are very risky due to the amount of inherent risk with a natural bounce to the vicious breakdown. However, that risk offers up potential gains of well over 75% to 80% if they return to their old lows in 2003. I have to take that reward/risk ratio. Remember, however, to you impatient guys that are new and can’t stand seeing us make money while you wait, YOU ARE DOING THE SMARTEST THING YOU CAN BE DOING RIGHT NOW. Yes, subscribers, cash is king, shorts are queen, and gold is prince!
new short positions: MHS MANT
MHS is breaking down below the 50 and 200 day moving averages, closing just .10 off the LOD, on its highest volume in a year. Cut your final loss with a close above the 200 day moving average, if the stock does not move lower immediately. Don’t forget, you do not have to wait for it to get above the 200 DMA before you cut your final loss. This is just the exact strict-disciplined way I go about my investing/trading.
MANT has failed near the January 2009 highs and has now broken down below both the 50 and 200 day moving average, on strong volume. Cut your final loss with a close above the 50 day moving average, if the stock does not move lower immediately.
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