Both CRM and LNKD are continuing to rally along with the market, but as they rally they are coming up into higher zones of resistance. If one were using tight stops on these from Thursday and Friday, one would likely have been stopped out a couple of percent ago or more, but traders should also remain aware of the fact that these stocks become shortable again as they rally into higher resistance areas. For CRM this is the 50-day moving average at 152.16 and for LNKD this would be the short area of overhead resistance at around 105. Note that LNKD slid past its 50-day moving average, but this can be the case with Late-Stage Failed-Base (LSFB) or Punchbowl of Death (POD) types of formations - they can have several sharp rallies back up into their 50-dma and a little beyond. If the market begins to weaken however, these remain short-sale targets, using new stops that should not be more than 3-5% beyond where one enters a short-sale position.
SSS - Thoughts on the Short Side: CRM and LNKD
|Published:||22 May 2012 16:03 ET|
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. ©2019 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.