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SharePlanner (< 20)

Call Me Crazy: 2 New Short Positions

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September 01, 2010 – Comments (5) | RELATED TICKERS: CERN , HK.DL2

One very bullish day isn't going to waver my belief and alter what I know the chart are showing, and that is more downside in this market. With that being the case, I used today as an opportunity to reload on some additional short positions. I was able, despite getting stopped out of DDS, to re-up my short commitment to 61% and expect that I will end up doing the same again tomorrow. My apologies for not posting more today, but as you know, today was a bit hectic from a market standpoint, and I spent most of the day looking at charts, and unsuccessfully trying to scalp the market.

One thing also worth mentioning is that the S&P tested both the 20 & 50 day Moving Averages on multiple occasions and was unable to push through those averages. So despite the major gains the market has seen today, there hasn't been any real damage done to the charts.

Tomorrow's jobless claims and Friday's employment number could wipe out the gains the bulls have seen today should the numbers come in worse than expected.

I remain unhedged overnight.

SHORT: Cerner Corp. (CERN) - Entry: 75.58

SHORT: Petrohawk Energy (HK) - Entry: 15.48

5 Comments – Post Your Own

#1) On September 01, 2010 at 5:16 PM, Gaugamela (96.10) wrote:

I agree that there is more downside, as I just blogged about raising my percentage of cash the other day.  I'm curious as to whether you actually ended up shorting BIDU.  Bad idea.  There could very well be some downside in BIDU's future, but that stock takes shorts to the woodshed.  There are easier shorts than trying to play with that one.

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#2) On September 01, 2010 at 5:52 PM, SharePlanner (< 20) wrote:

BIDU made it rough on me today. One of my worst short positions on the day.

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#3) On September 01, 2010 at 10:21 PM, guiron (20.31) wrote:

Yeah, BIDU is a freight train. You'd have about as much luck shorting NFLX.

Hard to say where we'll end up. Clearly, there is a lot of pent up buying power after many sideways-down days - today's news wasn't that great, and we rallied pretty decently. If the jobless number is better than expected on Friday, even by a little, expect a pretty big pop fueled in part by short-covering. Nobody wants to go into the weekend short, as Tuesday will bring a lot of traders back to the market who've been away for weeks.

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#4) On September 03, 2010 at 9:10 AM, guiron (20.31) wrote:

Yep, there it is. S&P E-mini 500 trading better than 10 points from right before the jobless announcement.

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#5) On September 03, 2010 at 9:12 AM, guiron (20.31) wrote:

Glad I was long this week.

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