At this point, when compiling my short watch-list, I'm not looking for setups that are good for "right-this-moment' though there are some in this list, instead, what I'm looking for is a post-market-bounce list of short setups. Most of the desirable short plays out there have already made their move - i.e. the easy money has been made.
Now, is the time where I'm looking to exit most of my shorts and right now I'm down to only 3 existing positions: CLNE, HOLX, SODA. Each of these positions have about 3-4% in gains, and when it comes to shorting the market, I really don't like to go for the home runs. Thats what leads a person to getting squeezed. So, outside of CLNE, I'm probably going to cover HOLX and SODA before today's close.
[Update: I covered HOLX at 19.57 for a 2.9% gain]
But what this short list offers is stocks that you'll want to watch once we get the inevitable market bounce, and then short them as they head into resistance barriers that provide lower risk/high return opportunities.
Trying to get heavy short today, or piling onto existing positions I believe is a huge mistake and one worth avoiding. There's a very likely chance, I won't be adding any new positions at all today.
Come tomorrow, I want to start scaling into some long positions to take advantage of the bounce when it comes, and I think there is no better of a week to do that than Thanksgiving week where the market has low volume turnout and historically tends to be more bullish than not.
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Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida. More >>