Category Archives: Shorts

Pandora’s Box

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This whole week has been a vomit comet, so it’s hard to make any generalizations about the current market, so I’ll just mention individual stocks. Besides AMZN, another nice winner for me today was Pandora. The chart was so-so, but intuitively (and this is a bit unusual for me to use anything but the chart as a rationale) I felt with all the effort Apple was putting into Internet radio, Pandora might not be in a great spot. Whatever the reason, the stock is tumbling, and I’m hanging on to the short.


Short Setups If This Is The End Of The Dead Cat Bounce

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The bears have been ripped to shreds since last Wednesday’s bottom and have been no where to be found since then. However, despite the huge bounce, there hasn’t been any significant repairs to the charts and the V-Shape bounce lingers an overdone dead cat bounce.

With that said, I don’t recommend getting heavily short here. If you want a starter position to counter some of the existing longs you have, then so be it, that’s not a bad idea. But slowly dip your toes in the water here if your desire is to get short.

As for me, I actually wouldn’t mind seeing another downturn emerge here. The trade setups are amazing to the short side as you will see from the short setups below. (more…)

The Key to Success

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The stock below, KeyCorp, is a good short candidate in its own right, but it’s also representative of the kind of short I’m seeking these days. It has these elements:

+ a clean topping pattern;
+ a firm drop, exhibiting that it’s vulnerable to the general weakness we saw in past weeks;
+ a hearty bounce, pushing it to a more attractive risk/reward level.

As with so many other stocks, this one has a horizontal line anchored on a gap (in this instance, at a dollar value of $12.71) (more…)