fb
X
X
Tired?
Unfocused?
Off your game?
Read our free, updated as of Mar 3, 2022, Dr K report on how to optimize your mind and body so you can boost your focus when trading the markets.
YES, SEND ME THE REPORT !
Meet Dr K !
Chris Kacher
  • Nuclear physicist
  • Stock & crypto market wizard
  • Blockchain builder
  • Bestselling author
  • Top 40 charted musician
  • Biohacker
  • Former computer hacker
YES, SEND ME THE FILE !
YES, SEND ME BOTH !
Your email will always remain private.

SSS - Thoughts on the Short Side for Thursday, October 27, 2011

With the Market Direction Model going to a buy signal and the Europeans deciding to liquify and grease the wheels, there is no reason to fight the tide. If you are stopped out, depending on exactly where your stops are, on any short position, then you must heed your stops. The market has been in a bifurcated state, but even successful short trades like GMCR have run their course with respect to price objectives and percentage profit objectives. In particular, GMCR undercut the 63.05 low in its consolidation that was formed during April of this year, so that is a logical point from which the stock could rally, which we might expect could carry up to the 200-dma. If you were using that as a trailing stop, we would not wait for the stock to get there.

In fact, we are testing a long position in GMCR to gauge its "buoyancy" as a rally up to the 200-dma might be a playable short-term trade based on the "logic" of the short-sale set-up in and the 60.05 undercut in terms of setting up a logical rally up to the 200-dma as short-sellers swarm the stock. We were particularly interested to hear hedge fund manager Whitney Tilson go on CNBC yesterday to babble about his new short position in GMCR. That might mark a short-term low in GMCR, who knows! For now we tend to think the heart is out of the watermelon in GMCR, are testing it as a potential short-term trade up to the 200-dma, and otherwise would not be trying to fight the market by shorting into this rally for now. Stay tuned. 

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. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
FOR OUR FREE MARKET LAB REPORT :
Copyright ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing.
All Rights Reserved.
privacy policy