It was a very ugly stock market session and the worst part is that the IBD 100 of leading stocks was one of the weakest indexes of the week down 6.7%. So for all of us that were hoping we could get a small rally with the current leading sector showing some nice charts and a few speculative looking charts starting to show up. Those leading stocks are gold stocks and continue to do well while the other leaders either don’t look good enough to last long as leaders or soon fail like medical and education stocks did. Thankfully, we live in the USA and in this free country and free market based system we are allowed to profit on securities when they are run by scam artist or are just poorly run companies. By being able to go short we have made some very strong returns in our portfolios since April 2008 and we mad some very strong returns from October 2007 to January 2008. From February to April we played the uptrend that had DGLY and PDO in it. Besides that short uptrend, it has been all shorts all the time and that is why we are going to now have almost 50!!!! shorts. How many of those are already up 15% to 95% since we went short? 35 (give or take one as I used my eyes to look these returns up quickly. How many of the 49 shorts that we are holding are not profitable? Only 2! Neither one has hit their FINAL cover areas so technically they are still setup to make us money. I have a feeling after Monday we will be 49-for-49 with our shorts. Don’t forget that we only have 5! longs to almost 50 shorts. I think that tells you how “strong” the market is. Don’t forget out of those 5 longs 2 of them are gold stocks and 25% of my IRA is in gold as a hedge against RUNAWAY budget deficits and hyper-inflationary St. Louis Adjusted Monetary Base (BASE)–the amount of money that is out there. They are printing it like it is magic. Cash is still king for newbies with shorts being queen and, of course, gold is prince.
new short positions: NST RMD UGI
NST is breaking down at the 200 day moving average, with the 50 day moving average rolling over right behind it, on extremely huge volume. Cut your final loss with a close above the 50 day moving average, if the stock does not move lower immediately.
RMD is rolling over and breaking down below the converging 50 and 200 day moving average, on very strong volume. Cut your final loss with a close above the 50 or 200 day moving average (it is up to you), if the stock does not move lower immediately.
UGI is failing at the 50 day moving average and closing in the bottom of its intraday trading range, after breaking down below the 50 and 200 DMA earlier in the month, on very strong volume. Cut your final loss with a close above the 200 day moving average, if the stock does not move lower immediately.
adding to existing short position: MHS
MHS is breaking below, down, and away from the near “death-crossing” 50 and 200 day moving averages, on very 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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