I am short on time due to the amount of time we spent on the other side of the island but I do want to give you an overview of the new short. MON is a new short due to the near-perfect breakdown below both key averages. I am also biased towards this stock due to the actions of MOS and POT for me back in 2008. Both shorts made well over 50% each for me (100% on margin) and I would assume those potential gains could come from this ex-leader. The ex-leaders are current laggards still and as long as they are lagging I will look to get short any proper breakdown. Since the market is trending higher on the intermediate term, I must be careful with my shorts. I am keeping them very small and will only consider a heavier line on my shorts if the market rolls over and starts to sell off on heavier volume. Other stocks in my short scans that could be potential shorts in the future include CEPH SLGN AZO FLO BIG HIW DLB GME and MTB.
new short position: MON
MON is breaking down below the 50 and 200 day moving averages, closing near the LOD, on very strong volume with BOP going negative. The RS, moneystream, and TSV are all showing negative divergence to price, confirming the internal weakness of the stock. 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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