Bearish Setups Holding On During a Market Melt Up

This market melt up is extremely common when a large amount of shorts are found with their hand in the cookie jar.

What happens here is the market slowly bleeds out the last of short sellers from this market, and while the rally isn’t as big as the initial few days of the rally, it is enough to start convincing the bearish stalwarts they need to get out of their positions. And what will ultimately frustrate the bears is when they are out of their positions and the market starts to move lower again without them.

That is why I am very aggressive with booking gains to the short side when I find myself on that side. And let me just say, for nearly all of June, I was shorting this market. But I have seen time and time again, just how aggressive the snap back rallies can be. And maybe we are just in a dead cat bounce right now, and if that’s the case, their will be a time where I’ll need to exit out of my long positions. But right now the market is melting up and with it burning through the profits of the short sellers that refuse to cover their positions.

The list below represents all the short setups I am following right now – no position in any of them. But I keep this list handy just in case this market is ready to take stocks lower yet again. But until then I remain a guarded bull, ready to flip sides once the market dictates that this pop that is currently underway is done and over with.

Here’s the list of bearish setups to watch:

ACM, ACI, ARMH, ATW, ACM, ACI, ARMH, ATW, AVGO, AXP, BBY, BEAV, BEN, BIDU, BK, BKD, BP, BWA, CA, CBI, CBS, CMI, CSIQ, CSX, KDS, EDU, FCX, FFIV, FLS, FSL, GE, GNC, GOGO, GPRE, HES, HP, HPQ, ICON, IDTI, INFY, IP, JKS, JNS, KAR, KEY, KLAC, KND, KSS, LLTC, LM, LNC, LVLT, MAR, MAS, MAT, MDRX, MGA, MGM, MHFI, MRO, MTW, NBR, NFX, NVDA, OAS, OI, ON, PH, PWR, QCOM, QEP, RRC, R, SGY, SLB, SLCA, SNE, SPLS, STLD, TAP, TD, TROW, TTM, TXT, UPS, URI, VIAB, WFM, WLL, WU, XOM, YHOO, ZION

Once again, I am not looking to add any of these short positions just yet. I am remaining patient and will wait for the market to dictate when it is appropriate to start shorting stocks again.