There’s a precious metals dealer in my town that has, in recent years, been paying for very big ads in the local paper. Until recently, their headline read “Record gold prices? It is only the beginning!”
For obvious reasons, they’ve moved away from that headline, since it stopped being true, oh, about two freaking years ago. Now they’ve got a much smaller ad with a much different headline:
In the interest of aligning my suggestion with these grotesque market highs, I offer up another bullish idea – – Metro PCS, which is sporting a pretty clean inverted head and shoulders formation.
Well, now that I’ve gotten my grudgingly-offered long out of the way, let’s return back to the more natural Slope style and mention another short idea. The fir is New Gold, and for those who thought the bearish days of miners were over, look no farther than $HUI, GDX, $XAU, NEM, or ANV. I like the chart below in particular, and I’m using $8.09 as my stop-loss level.
A few folks on the blog are irked that I dare keep posting short ideas, since the market just keeps going up. OK, OK, here’s a good long idea – Host Hotels & Resorts, which has a very clean breakout above a descending trendline. Sheesh!
Back on April 2nd, I did this post stating that I was shorting Nuance that day, in spite of Carl “Hello?” Icahn buying up a big stake in the company (which one wouldn’t normally associate with future lower prices).
I’ve marked with an arrow the day I did the post. Although the stock dipped afterward, it did push the position into a loss for a little while with subsequent strength, but this morning took care of all that. Nuance is presently down nearly 20%, and I’ve covered to take a profit. It just goes to show one mustn’t always be scared of really handsome, sexy billionaires. Often the chart is still right. (more…)