Frequently Asked Questions
Pocket Pivot Review / Buyable Gap Ups
What do you use intra-day to evaluate when to go short?
Q: I am watching for this bounce to play out. What do you use intra-day to evaluate when to go short?
A: We just keep an eye on volume. If the market is rallying on weak volume, such as it is this morning, then we look at our target short-sale stocks to see if this is coinciding with them moving up into a logical area of resistance, such as an area of prior overhead supply, or the 50-day, 20-day or 200-day moving averages. I then use 20 cent upside stops on short positions as I test and probe the rally for weakness.
Published: Aug 25 2010