While the pocket pivots in MON and JVA may not come to fruition, it is necessary to maintain an even hand here and take note of stocks on our short-sale target list that have rallied up into resistance: AMZN into 50-dma, TIF into 65-dma, BIDU into 50-dma, CRR into 50-dma, SINA not quite into 50-dma but close enough, AGU into 50-dma, DECK approaching 50-dma, UA into 50-dma, SOHU into 50-dma.
If the general market is unable to rally further from here, some of these may roll over with the market, hence would-be short-sellers should be aware of the action in these stocks, all of which have shown prior base breakdowns. Keep in mind that success shorting into any of these rallies will likely be dependent on what the general market does here, as a sustained general market rally could carry these 3-5%, perhaps a little more, past these logical resistance areas at the 50-dma, 65-ema, or 200-dma moving averages.
For the sake of fair disclosure, we are testing short positions in any number of these short-sale targets as they rally into potential resistance, although it is not clear just yet that they will be held.
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. ©2018 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.