SSS - Some Set-Ups on the Short Side
What troubles us abut this market is the slow, steady deterioration in leaders and former leaders. Volume is up currently and the indexes are reversing. Right now we see the following stocks as shortable, using a 3-5% upside stop max: Chipotle Mexican Grill (CMG), Baidu (BIDU), Fossil (FOSL). Previously we discussed VMware (VMW) and F5 Networks (FFIV) as downside breakouts from reverse flags a couple of weeks ago, and they are starting to come loose as well, so we view them as potential short-sale targets here. We think that if the market continues to deteriorate these will head lower.
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.