We still consider some of these short-sale targets to be in play, such as BIDU rallying up and just past its 50-dma, and GMCR, which has merely rallied to the top of a possible right shoulder within an overall head and shoulders topping formation. AAPL has yet to break the 400 price level, and so until it ever does we would not be aggressive on the short side in AAPL, although the stock is only up 2% today on big GOOG earnings. Today's big gap move should not cause too much damage given the small % move in AAPL.
That all said, this market continues to move higher, but as we see it this is mostly a junk rally, but given the bizarre QE times we live in, it does not surprise us. The best tactic if one is intent on shorting this rally is to play light until some confirmation that the rally is failing becomes apparent.
Meanwhile, we do not view Wednesday's weak 1.43% move in the NYSE Composite Index when none of the other major market indexes could even muster a 1% move on the day to be a valid follow-through day as we measure them.
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.