SSS - Short This Rally? Part 4

Published : November 29 2011 at 11:15 ET

If you put out any positions, whether small or not-so-small, on the short side a little while ago on the basis of our first email from earlier this a.m. (Short this Rally? Part 3) here's what you know right now: your positions are starting to show you just a little bit of "love," and so are starting to work. The key is whether they continue to work, but there is no way to know that for sure. All we know is that the market is starting to come in here and the NASDAQ has reversed into the red. We are targeting AMZN, BIDU, and CRM, and while CRM is arguably an NYSE-traded stock, it is still a tech stock in a weak position. Note that CRM and AMZN are currently acting weaker as BIDU holds around the 126 level, thus we might fine tune our shorting targets down to CRM and AMZN, especially if we have positions in them already. BIDU may yet push lower, but for now it is showing you relative strength vs. your other two targets. Note that VMW, CRM's cousin-stock, is sputtering around its 50-dma and 65-dema, which may help confirm weakness in CRM. This is our thought process at this juncture, keeping in mind that QE remains the "bizarro factor" in the mix. We intend to stay nimble for now. 

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. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.