SSS - Short-Side Thoughts: Not Much to Think About

Published : April 26 2012 at 11:45 ET

We note a quick stop out on our FFIV short-sale "set-up" that is not panning out. One thing we do observe with FFIV is that it tended to find a bid in the 127-128 area each time it looked as if it was ready to bust the 50-dma. With the stock pushing above the 131.30 gap-up day intra-day low, we would actually shift from shorting FFIV to looking it as a potential long here based on the visceral evidence gained by trying to short the stock and getting stopped out for a tiny 1-2% loss. When shorting in a market environment that simply does not want to "give it up," valuable information can be gained viscerally when trying to short stocks that simply do not want to go down. As Jesse Livermore might say, if a man finds himself on the wrong side of the market, the only thing left to do is to get on the right side.

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.