You gotta love a mindless and massive gap-up on the first trading day of the year, especially when short-sale target stocks like CRM and FOSL reversing on the day after gapping up with the market like so many pieces of bait being cast to the fish. Even if you get stopped out if you are using tight stops on any of these, one must always be ready to come back and short 'em again if they weaken. CRM is having some trouble getting through this 102-105 zone, while FOSL could not even rally up to its 20-day moving average and is now pushing back below the 80 level. We are not averse to being short these, which we are currently. So far that appears to be working, but anything could happen going into the close and after the Fed minutes are released in a little over an hour from now, so while we see some favorable action here shorting these into the gap-up, we recognize that we could still be stopped out at any time as the day is still young.
SSS - Thoughts on the Short Side on the First Trading Day of 2012
|Published:||3 Jan 2012 17:50 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. ©2018 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.