SSS - Short This Rally? Part 4
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.
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