There may be one new short for Monday but clearly the short side is not rewarding investors with any meaningful sustained gains to the downside. On top of that, we have many leading stocks with strong fundamentals with very nice chart patterns. Friday’s move was also an overall bullish day, despite the below average volume, and continues the trend of no follow-through to the selling. It is still an overall listless tape where NOW IBD 100 and IBD 85/85 stocks RS lines are starting to zoom higher and lead the market. This could mean we are setting up for an upside move after Labor Day but until it happens I will not start counting my chickens before the eggs are hatched. If you do decide to take this short position it should be very small. I remind you if your account is not big enough to play around, you should not take a position at all. This trade is not worth it in this tape.
new short position: TEL
TEL is putting in a bearish intraday session, opening near the LOD and closing near the HOD, right after having a “death cross,” on very strong volume with BOP moving lower to the red territory. Cut your final loss with a close above the 25.81 level, if the stock does not move lower immediately.
