Short-Sale Set Up - What to Watch For - Gil's Short Strategy
|Published:||14 May 2020 10:47 ET|
Since the fastest downside moves tend to occur off the peak, I would watch some of these extended leaders for signs of cracking. This would entail a break below their 10-dma and 20-dema as a potential early entry using those moving averages as your covering guide. I do not necessarily believe that the market is destined to go higher. We could retest the March lows, and in that case the last thing I'd want to be is long. Thus keep an eye on FB and GOOG which are now below their 10-dmads. As they pull into their 20-demas that can offer a lower-risk long entry spot, but if the 20-dema is breached, that could trigger them as short-sale targets at that point. Also keep an eye on cloud leaders like COUP (wobbling at the $200 Century Mark), DOCU, MDB, TTD, VEEV, ZM, ZS, etc. which are extended and may be vulnerable to sharp pullbacks.
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. ©2020 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.