I don’t think there’s ever been a single stock I’ve suggested as a short more than Finish Line (symbol FINL). My poor tastytrade viewers probably got sick to death of hearing about it, but it’s one of the most amazing topping patterns I’ve ever seen, and given how far it’s fallen, I doubt anyone’s bitching about my frequent mentionings of it.
One problem I’ve had as a trader is covering shorts too soon. One great example is Chicago Bridge & Iron, which I yammered on about endlessly as well. It did indeed fall hard, and I took my profits. The problem is……….it won’t stop falling.
As I wrote to my PLUS members on August 24th regarding junior miners, “..…as I look at the miners, I’m seeing signs of life. If you believe the breakout is meaningful and want to amp up your commitment, a good way to do it would by via the triple-bullish ETF symbol below, which itself has had a clean breakout from a rather long downtrend.”
Well, it didn’t take long for this to blossom, as gold has broken out smartly………
Earlier this morning, I sold my SPY October $245 puts for an overnight profit of over 50%. I have several remarks about this:
- It’s kind of stupid of me to buy options that don’t expire for something like ten weeks and sell them the next freakin’ day, but what can I say………I’m a wimp.
- I’m going to be driving 20 hours (round trip) to see the eclipse Monday morning, and frankly I’d like to enjoy it without worrying about my stupid options position.
- I hardly ever trade options.………literally one trade for every few hundred equity trades…..but I had a “feeling” yesterday morning to give it a shot.
- Most importantly, this trendline below compels me to not be greedy.
Of course, this all probably means a CRASH on Monday, so………you’re welcome!
Many of you know of my fondness for being short auto retailers. This really paid off last month when such firms as O’Reilly Auto Parts……..
Starting in October 2016, I pointed to Chicago Bridge as a fantastic head and shoulders pattern. Here’s one of the earlier charts I offered:
I’ve maintained a steady interest in energy issues, and I’ve been noticing with increasing delight that energy stocks are acting weaker than oil. On days that oil is strong, energy stocks are either “meh” or, in some cases, down. On days that oil is weak, energy stocks are really weak. You can see the increasing spread here: