SSS - Thoughts on the Short Side for Wednesday, December 21st.
With the Market Direction Model staying on a sell signal, our inclination is to look at our target short-sale stocks as being shortable into the rally when it comes to stocks that are still in a compromised technical position. Thus, with AAPL pushing above its 50-day moving average, which we were using as a guide for an upside stop, we would tend to be cautious, while AMZN, which remains below its 200-day moving average remains in play.
Most were puzzled by yesterday's wild move to the upside, but today we learn that the European Central Bank is going to print, er, we mean "lend" 489.2 billion Euros to 523 banks. That makes for 1.0695 billion Euros per bank! European markets have also weakend now that the news is out, but at least now we might know what yesterday's crazy move was all about.
Some other stocks to watch here: CF, using an upside stop at 140, which is prior resistance. BIDU and CRM are long gone to the downside, and CRM is getting raked on ORCL's miss yesterday, so they are not shortable here, but another stock we like here short is LNKD, using the high of today as a quick stop. We have positions in AMZN, LNKD, and AAPL currently, but it is not clear whether we will hold these as this will depend on the general market action and any change in the MDM's current signal.
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