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SSS - Thoughts on the Short Side in a Paradoxical Market

The market looks like it is trying to follow-through today, but Green Mountain Coffee Growers (GMCR) is rolling over on the right side of the right shoulder of a possible head and shoulders formation. AAPL, meanwhile, staged what looks like an "abandoned baby" or "island gap" today and if it can't hold the 400 level it could be meaningful for the stock and the market. We put out test short positions in these earlier and are getting lucky here as they move lower. We'll see how they close, but these two stocks may be shortable using today's highs as a quick stop. Meanwhile BIDU, PCLN, and others we've disucssed as short-sale targets have rallied right into resistance, with BIDU being shortable here using the 50-dma at 134, roughly as your stop, and PCLN being shortable using today's high at 503.98 as your stop. This market is still screwy and so while we are amenable to testing the short side here with the idea of getting more aggressive if the market does find resistance here, we understand that the situation is very much in flux as we approach the final hour of the trading day.
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