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SharePlanner (< 20)

4 Stocks Prime for Shorting

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May 28, 2010 – Comments (2) | RELATED TICKERS: OSTK , ESS , CEB

The stocks below are mainly those stocks that have been on a solid uptrend of late, but are starting to show signs of breaking down along with a loss of interest by the street as a whole. So if you are looking to short this market, use the list below as bit of a primer to get the water flowing. All four stocks (one of them is an ETF, though) are pretty good when just looking at price and volume, however, what is concerning is some of the glaring bearish divergences that are popping up. One such indicator is the Time Segmented Volume - TSV that shows all of the stocks below in the negative, which is a good indicator that the longs are starting to get a bit skittish in their current positions, and will begin looking to take profits in the near future. I've got these stocks added to my short watch list and will watch them for just the right opportunity to initiate a position in.

Here are the 4 Stocks Prime for Shorting.

2 Comments – Post Your Own

#1) On May 28, 2010 at 2:35 PM, jed71 (47.62) wrote:

A bit of extra research on OSTK also shows that they have problems that extend well beyond the technicals you point out above. I would say fundamentally, they are by far the worst company on your list of four. I know EXBD pretty well and that is one I would probably not ponder shorting.

OSTK also has a ton of problems with their CEO and accounting practices. Take a look at the recent SEC investigation against them and you'll understand what I mean.  

Seeking Alpha article from 5/27 :  

http://seekingalpha.com/article/207175-overstock-com-s-ceo-unloads-shares-while-sec-fiddles

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#2) On May 29, 2010 at 2:59 PM, SharePlanner (< 20) wrote:

Great Jed! Thanks for the link too. OSTK is at the top of the list. I'll be frank and tell you I was surprised when EXBD popped up on my screener. Fundamentally they look sound. In fact, They happen to be one of the best long positions I held all year (sold them early May).

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