Five New Starter/Testing The Waters Short Positions

July 31, 2007

Remember, this market might be in a correction but the leading stocks like RIMM AAPL CROX GOOG TNH and FWLT have not put in clear tops yet. When these stocks start to breakdown you can guarantee the time to make the big fast money shorting stocks will be then. But for right now the market is only starting to weaken. Do not jump the gun and think this is the ultimate top. People did that in 2004 2005 2006 and in February 2007. Every downturn you see in your charts was supposedly the start of the next big bear. Well, until those stocks I just mentioned all start breaking down on huge volume on their weekly charts, fail their 50 and 200 day moving averages then rally back and fail those test you simply can not say that the big bad bear is here. Could this be it? Yes. But until my true leaders breakdown I am not going to go 200% on margin in these shorts. For now they are very tiny test positions, since my other short recommendations have been doing so well recently.

The other thing that keeps me from shorting the market to kingdom come is that I still have a lot of longs well above their 50 day moving averages and above key support.

THESE ARE ALL LIMIT ORDERS. IF THE STOCK GAPS TOO FAR DOWN, THE POSITION WILL NOT BE TAKEN.

new short positions: ING PLD AMP MS TMA

(all under $500 each)