SSS - General Thoughts on Shorting Currently

Published : October 22 2010 at 14:22 ET
Invariably, we will receive emails asking us whether sending out a couple of SSS reports means we are turning bearish on the market, so we'll answer that with a quick, qualified, no. One way we like to test the strength of a rally is by shorting a couple of targets in a reasonable short-sale positoins. If they feel soft, that can tell you something about the market. If they aren't soft, then that is also telling you something about the market. If the general market holds up or starts to firm up going into the end of the day, we may end up covering any short positions taken during the day and waiting to see if the genral market changes in the coming days. Meanwhile, long positions that may be acting well are also telling  you something about the market. We tend to see this market as a bit volatile and rotational here, with some groups getting smacked around on any given day while others act very well. When short-selling, it is critical to try and synchronize your shorting with the general market. If the market remains resilient, be cautious about shorting into the face of this action if your shorts and the market don't "give it up."


This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2014 Virtue of Selfish Investing, LLC. All rights reserved.