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.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (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. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2021 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.