Once again, there are no new short positions, for Monday’s market session. The market is still in an uptrend on the long-term, intermediate, and sub-intermediate term time frames while being flat/lateral on the short-term. As long as the market is not under distribution, not making lower highs and lower lows, and not moving below the key 50 day moving average then there is no way I am going against 130 years of stock market data and fighting the odds by going short. The market may be acting odd here but sheesh we have basically been going straight up and to be honest it is nice to have pullbacks on the way higher to shake out the weak stocks and set up bases in the stronger stocks so that we can buy them on the breakout. If you want to study what I want a stock to look like BEFORE I go short then study these stocks that were in my short scans Friday. CHK, RRC, CNX, UPL, EQT, UL, COG, PBR.A, OSG, NOV, SPN, and TXI. You will notice that all of these stocks are below their 50 and 200 day moving averages and that the majority of them are in the oil&gas group. That means that if we were in a bear market, we could look to go short the oil&gas stocks on low volume rallies and heavier volume failures at the key 50/200 day moving averages. However, since 3 out of 4 stocks follow the general trend of the market, and that trend is up, there is no way we should look to take those trades right now. This is a game of odds and proper money management. Don’t put the odds against you. Speaking of odds, most of these stocks do not even offer up the proper reward/risk ratio anyways (I want a previous 100% move from the most recent lows of the past year to where the stock is now).
new short positions: none
none
