My short scans were very empty again due to the continuous low volume that we have been seeing all summer. Luckily a lot of leaders that show topping patterns are still in position where they are not too extended to the down side and could be great shorts when this low volume drift is finished. When we do move lower I am very sure we will see a great increase in the number of shorts this time around as the Nasdaq, Russell 2000, and IBD 8585 indexes are lagging to such a degree. These stocks led on the way up and if we move lower they will lead on the way down. We have one strong stock as a new short for Tuesday that has the Relative Strength and Moneystream lines hitting new three-month lows ahead of price. I wan to remind everyone that I am still keeping my shorts relatively small and not increasing the size just yet because the volume is still overall so very low. That combined with a market that is basically just going nowhere makes me very very confident that I want to stay in cash waiting for the proper moments rather than just trading due to boredom. That is a rookie mistake and professionals should never do this.
new short position: PETM
PETM is putting in a bearish intraday reversal nearing a breakdown below the 200 day moving average, closing near the lows of the session, on strong volume with BOP moving into the red levels. Cut your final loss with a close above the HOD (30.62) level, if the stock does not move lower immediately.
