There are no new short positions and there have not been any new short positions because two things were present. The market was in a short term rally there the past couple of weeks and after the recent heavy distribution there were no charts close to that “ideal” setup that I want to have to make money in a high reward/low risk position. The beauty of this methodology has been proven today as the market sold off early and got EVERYONE thinking “here comes the next leg down” only to make them look foolish, once again, and set off a very bullish intraday reversal. This is why in recent weeks we have had zero short positions and yet continue to have new long positions. Because, obviously, the market, after these distribution moments (we had one in October too) wants to still advance higher. How else can we look at it after a day like today. The other hand the market has showed us is in taking our only three short positions and completely turning two of them on their head the past two sessions. Yesterday, it was PTV, despite the clear selling, and today it is KSS which just had one nasty reversal. Good thing, in both of these stocks, we were given signals that they might reverse and BOTH OF THEM were almost completely covered before these past two market sessions. Nobody should have had more than 20-33% of either one as I gave TWO “partial cover” signals in the Gold Forums. Disciplined trading works and today was yet another day of proving that. The other thing this market is proving to disciplined investors is that the best know when to be fully on margin and when not to be. This is clearly not the time to be.
new short positions: none
none
