I’m not willing to say that the lights have been turned out on the bull’s rally parade of late, but I do think they are looking at some major problems here, that they need to soon correct, before the bears are finally resuscitated back to life. In my short positions that I executed this morning, I basically looked for stocks that would give me  low-risk setup, that should the bulls bounce back from this sell-off, I wouldn’t feel to much pain in the process. 

SHORT: AT&T (T) – Short at 28.22 – Not a huge risk considering how tight my stop-loss is, and the fact that this stock has a very low beta. But the setup is ideal, and the risk/reward ratio is favorable. 

LONG: ProShares UltraShort QQQ (QID) – Long at $10.86 – Jumped in QID in the pre-market, after watching the little amount of enthusiasm for the good jobs report wane, which showed the bulls had little desire to bounce this market today.

SHORT: Polaris Industries (PII) – Short at $73.23 – Ideal bear-flag pattern with resistance of the 50-day moving average just overhead. If it breaks out of the pattern, it is setting up for a significant move downward. 

 

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