SSS - Thoughts on the Short-Side on a Big Dive Day

Published : April 23 2012 at 10:45 ET

AAPL bust its 50-dma here which doesn't look good for the general market. Meanwhile, we are looking at possible short-sale set-ups here, and certain (AMZN) bears looking at but the only issue there is that earnings are coming later this week. Meanwhile, we are looking at F5 Networks as a possible Late-Stage Failed-Base Set-Up and are testing a short position here. Notice that the gap-up of three trading days ago has now failed, so the theory here would be to short the stock using the low of the gap-up day at 131 and change as an upside stop for any FFIV short position. We are short FFIV currently on this basis, using a tight stop. If it busts the 50-dma to the downside then we think we are looking at the start of a true LSFB short-sale set-up, but the situation remains fluid, and we may be in and out of this all day as we see how the general market situation pans out by the close.

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