SSS - Deep Morning Thoughts on the Short Side for Thursday, June 30th
Okay, so maybe these thoughts are not so deep, but note that both NTAP, ARUN, and AAPL are all acting weak in the face of a market that is trying to push up close to 1% as we type at 7:51 a.m. Pacific Time. As we wrote yesterday, coming in on the short side here means waiting, for the most part, for the indexes to fail on this rally attempt. Currently the indexes are all pushing right up into the 50-dma lines, so we watch and wait. Meanwhile, if one is short starter positions in ARUN, NTAP, or AAPL, there isn't much strength here to push you out of your positions just yet, and in fact all of these stocks have come down off their intra-day highs this morning. Thus we can see where the weaker short-sale targets are, and therefore which stocks to go after in the event of any kind of rally failure.
Should the market follow-through, then it is a simple matter to back away from any starter positions, but the day is still young.
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