This is going to be a “starter” position as I do not want to get too short DE as I want to use more of my money for some better setups with other past huge winners that I want to short. But for now, DE makes a good short, as there is nothing else right now because of the very strong closes the market has been producing the past two days. So I am not going over 100 shares but that should be enough to produce some nice gains if this ex-leader decides to selloff here.
new short position: DE
DE is failing right at the 50 day moving average, on strong volume (extremely strong on the weekly). The stock had a very high volume bullish reversal two days ago but it rallied right back to the 50 DMA with the BOP never making it back above the zero line. This helps make the chart quite bearish, even though the stock’s price is still above the 200 DMA. Cut your loss with a close above the 50 day moving average, if the stock does not move lower immediately.
