The market had a very ugly session today, with indexes closing either at or near their respective LODs. However, there was no volume behind the move and that means that we avoided a distribution day. The lack of volume indicates big funds were not running to the door to dump shares and that we had a lack of buying today that led to lower bids. Still, no matter what the cause was, it was not great for bulls looking to race higher after Friday’s session. On top of that a couple of new shorts have popped up. CBD is pretty clear cut but on SIG I recommend using limit orders around the 27.50-28 area if you are looking to get a healthy stake in that one. In this market, though, I wouldn’t recommend getting heavily short anything as we continue to have absolutely no follow-through to the occasional days where we do get heavy selling on big volume. It is still a very mixed and listless market where cash must be the key play so that we have plenty of capital to put to work when a trend does start up or down.
new short positions: CBD SIG
CBD is breaking down below the 50 and 200 day moving averages, closing near the LOD, on heavy volume with BOP going back into negative territory. Cut your final loss with a close above the 50/200 day moving averages, if the stock does not move lower immediately.
SIG is breaking down at the downtrending, recently death-crossed, 50 day moving average, closing near the LOD, on strong volume with BOP going back into negative territory. Cut your final loss with a close above the 28.40 level, if the stock does not move lower immediately.
