SSS - Thoughts on the Short Side in a Paradoxical Market
| Published: | 12 Oct 2011 18:57 ET |
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.
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.