SSS - Thoughts on the Short-Side Right After the Bell on Wednesday, October 19th
FOSL and GMCR remain weak even in the face of a follow-through day in the general market indexes yesterday. While this has led to a buy signal being issued by the MDM in the short-term, we would still watch AAPL for a failure at the $400 level as a potentially shortable event that may have implications for the success of yesterday's follow-through.
GMCR can still be held short using the 82.40 undercut low of two days ago as a quick trailing stop, but the fact that the stock cannot muster much of a rally in the face of a big move in the general market yesterday does not speak well for the stock
FOSL tried to rally to the 94 level earlier right at the bell but is pulling in and may remain weak.
There is still a great deal of "mushiness" in this market, and so if one is interested in playing individual stocks then approaching the market as a market of stocks instead of a stock market might make more sense. Stocks which remain weak can still continue to move lower even if the market tries to rally, and so the short side remains an open question here so be alert!
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.