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SharePlanner (< 20)

Shorting Active Network (ACTV) for Additional Hedging

Recs

1

October 01, 2012 – Comments (0) | RELATED TICKERS: ACTV , AAPL , INVN

There's no doubt we are getting a nice push higher today in the market and we may finish higher yet, but there are some concerns under the surface that is frightening me some - namely the strength in the VIX, which has been hovering in positive territory, despite the market strength. 

Also, I've seen sizable pullbacks in a lot of names this morning and Apple (AAPL) for one is the most glaring of them - only up 0.2%. I don't really like seeing the market's best not leading the way on what should be a momentum day like today. 

As a result I've curbed my four long positions with an additional short position to combine it with my already short position in Invensense (INVN). 

My new position is in Active Network, which I shorted at $12.17 after Judith_G in our SharePlanner Pro chat-room posted the trade. 

Note the downward channel long term, followed by the breakdown of short-term support, as well as a steeper short-term down-trend. 

This stock should produce some fine gains if this market does turn over here today and in the days ahead. I also find that it will struggle to rally much if the market moves higher. 

My stop is at $12.86. 

Here's the trade setup in Active Networks (ACTV)

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