I have three new short positions in my scans tonight and after today I would not be surprised if more and more start showing up. The market is really starting to look in trouble now and besides some of my longs working (while half are not) there really is nothing positive to say for the bulls. Leading stocks are starting to break down more and more with NFLX and ISRG joining a host of others that have already started breaking. The problem with ISRG breaking down tonight AH is that it puts a major dent in what I am going to probably get filled tomorrow. ISRG had a perfect breakdown today but the AH blowup means that a great fill is completely out the door and unless there is a powerful intraday rally I am pretty sure most of my limits are going to be completely missed. Of course, this is one of the leading stocks I was looking to take a large position in so I guess that is just my luck in this difficult-to-trade market since the flash crash. This is definitely not a trend trader friendly market but that is OK as I am experienced enough to know that cash is king. I am also experienced enough to know that signs are starting to point to a market that will be trending soon (or at least appears to be). Those signs are pointing to lower stock prices as there are a lot of bearish signs showing up. My main long scan is filling up with closed-end-funds which historically only show up in intermediate to long-term bear trends, the indexes constantly find resistance at the downtrending 50 day moving averages, there are death-crosses on almost all the indexes with the Russell 2000 being the next to get hit, leading stocks of the 2009 uptrend are breaking down more and more as this market goes along (BIDU VMW CRUS NTAP are about the last holdouts right now), and anytime we do get an increase on volume on non-options expiration days it is always with the market making a downside move. This is not good for those looking for the latest rally attempt to hold as it seems more and more likely the recent rally this month is running out of steam. Cash continues to be king but if we continue to crack I will have no problem looking to get real short and especially will be looking to short those past leading stocks of 2009. ISRG was perfect until AH and now it will be a small short. That is just the way it is sometimes. This is not an easy market and that is why cash is still king.
new short positions: ISRG MET SFG
ISRG is failing at the 50 day moving average and breaking down below the 200 day moving average, closing near the lows, on very strong volume with BOP moving to negative territory. Cut your final loss with a close above the 50 day moving average, if the stock does not move lower immediately.
MET is failing at the 200 day moving average, after recently failing at the 50 day moving average, closing near the lows, on strong volume with BOP moving into negative territory. Cut your final loss with a close above the 200 day moving average, if the stock does not move lower immediately.
SFG is breaking down right at the 50 and 200 day moving averages which are about to suffer a death-cross, closing near the lows, on strong volume with BOP re-entering the red levels. Cut your final loss with a close above the 50/200 day moving averages, if the stock does not move lower immediately.
No fill on SFG. Did not get short. Weird day. Choppy, listless market continues.