The new shorts with the best setups are AZ and PSYS. If you look at these two on a weekly chart you can tell that both are rolling over on heavy distribution after already suffering a lot of distribution during the topping process. AZ looks much worse with all the extremely heavy selling it has suffered. DTE is in the same position but that stock is a bit more risky since it has fallen five of the last six sessions. Therefore, the stock might be too oversold on a very short-term basis and rally back to the moving averages. However, if this market weakens, it will probably just continue to breakdown like our PNC has been. MSTR is probably the short that everyone should stay away from and/or keep very small. I am keeping it very small as it reminds me too much of AGO. The green BOP and that day of heavy accumulation is enough to force me to keep this low. SPG and MDU are both excellent looking short patterns. The heavy distribution on MDU and SPG is so strong that it can’t be long till both of these stock breakdown and produce some nice gains. The main thing to remember is to always cut your loss if these don’t work out. Never second guess taking losses and make sure you do not load up on stocks like MSTR.
new short positions: PSYS AZ MSTR DTE
PSYS is breaking down at the 50 and 200 day moving average, on strong volume. Cut your first loss with a close above the 200 day moving average and your final loss with a close above the 50 day moving average, if the stock does not move lower immediately.
AZ is breaking down at the 50 day moving average after failing to even make it back to the 200 day moving average, on very strong volume. Cut your first loss with a close above the 50 day moving average and your final loss with a close above the 200 day moving average, if the stock does not move lower immediately.
MSTR is breaking down below the 50 and 200 day moving average, on strong volume. Cut your first loss with a close above the moving averages and your final loss with a close above the 94.82 level, if the stock does not move lower immediately.
DTE is breaking down below the 50 and 200 day moving average, on very strong volume. Cut your first loss with a close above the 50 day moving average and your final loss with a close above the 200 day moving average, if the stock does not move lower immediately.
adding to existing short positions: SPG MDU
SPG is breaking down below the 50 day moving average after failing the 200 day moving average, on very strong volume. Cut your first loss with a close above the 50 day moving average and your final loss with a close above the 200 day moving average, if the stock does not move lower immediately.
MDU is breaking down at the 50 day moving average, on below average volume. Cut your first loss with a close above the 50 day moving average and your final loss with a close above the 200 day moving average, if the stock does not move lower immediately.
