On a percentage basis, this is my second-best performing short (second only to EZPW). I’m just crazy about this analog. I can see much, much lower prices ahead.
Many of you know that yesterday morning I had two small positions in GDX and GDXJ on the short side. They got instantly stopped out due to an explosive gold rally.
However, in the middle of the day, when gold was up nearly $19/ounce, I did a Slope Plus post called How to Handle Miners in which I stated the obvious (that the miners short was stopped out) but also the not-so-obvious, which is that I thought the big rally was countertrend and should be faded. Thus, I bought DUST, the triple-bearish-on-miners ETF.
Well, given the action so far, it looks like the gold rally is at least partly reversing, which is good. The next big question is how it handles that gap (green tint). Does it fill it and strengthen or does it slip below and resume its bearish ways?
On the 22nd of December, I gave a heads-up about shorting Micron if it got close to its gap. Specifically, I said I’m going to be watching this, because if it can stay below (or at least not far above) 23.66, it may be a very interesting new short based on its gap closure. So how high did it get? 23.64.
Abercrombie & Fitch (usually referred to here on Slope as simply “Skank”) has been in a slow burn for a long time. I’m a big fan of retail shorts these days (KATE, PIR WSM, etc.) and this is the absolutely king of the clobbered.
Back on November 2nd, I suggested to my Slope Plus subscribers to “Short the Continent” (that is, sell short the Euro). So far, so good………we’ve got another major break this morning. The trade has thrown off about an 8% profit in a short amount of time, and I think we’re simply going to continue chopping our way down to a 1-to-1 ratio with the Euro.