Short-Sale Set Up - Intraday Review of Recent Short-Sale Set-Ups on 5/20/16

Published : May 20 2016 at 12:20 ET

We note that GOOGL, MSFT, and TSLA have rallied into their20-day moving averages, which could bring them into optimal shorting range using the 20-day line as a guide for a very tight stop..

DIS and HD area approaching their 50-day moving average, which brings them into shortable range.

MCD has continued to move lower. We advised shorting that on Monday.

MBLY is hanging in a short bear flag just below its 20-day moving average and is roughly in a shortable range.

NFLX is rallying above its 20-day moving average, so one would wait for a reversal back through the 20-day line or look for a continued rally up as high as the 50-day line at 97.49, should that occur.

In each case using the nearest moving average above the stock can serve as a tight stop given the volatile action.

The ultimate outcome of any of these will likely depend on where the general market goes from here. If this rally fails, then expect a few of these to work on the downside. If the market continues to rally, then look for the next available area of potential upside resistance if the short-sale targets rally higher with the market.

However, in the event of a further market breakdown short-sellers should have some arrows in their quivers, ready to act if necessary.

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