Category Archives: Shorts

That Not-So-Fresh Feeling

By -

I shorted Sprouts Farmers Market yesterday for a couple of reasons. First, these Whole Foods copycats, from what I can tell visiting their stores, are pretty second-rate. I do a lot of grocery shopping, and there’s no way I would buy at SFM instead of Whole Foods. Second, along the same lines as my Blackberry short the other day, I’m no longer afraid of stocks that have already been clobbered. Anyway, so far, so good………..

0701-SFM

ES Short from Retracement Levels

By -

Yesterday the market tried some recovery, amidst a flurry of news coming from Athens, Brussels and Berlin, regarding the risk of Greece defaulting on its debt. The bounce had retracted completely by the end of the day, but overnight the market is trying again the same rebound, so today the Close may be positive.

In the ESU15 DAILY chart below we can see the next valid support and resistance levels and we have highlighted the fact that the market will reach 100% odds to go SHORT DAILY at the 2091 level. This means that based on our DAILY model reading, the market is already OVERBOUGHT and marching towards a 100% OVERBOUGHT DAILY condition. A new pullback is nearly sure to happen before then. It is hard to say if it will be another sharp pullback or just a small one followed by higher prices. We can only say that when the odds are good, LONG or SHORT, you must take action to profit from the upcoming reversal.

(more…)