Three New CANSLIM Former-Leaders Short Positions, Two New Short Positions, Two Stocks I Am Adding To My Existing CANSLIM Former-Leaders Short Positions, And One Stock I Am Adding To My Existing Short Position

January 25, 2008

I am not loading up on the former leaders like I still want to but I am going to initiate a large position in these three equal the size that I took in AAPL GOOG FSLR and to a lesser extent, sadly, GRMN. I still think that is going to be more backing and filling in this market–I could be wrong though–and would like to get them at a better entry point with a clear breakdown around both the 50 and 200 DMA. The volume on these moves still are not convincing that the stocks are ready to give it up. Still they definitely feel very toppy and heavy. SU is very red and full of distribution and even though it is down a lot already it still has a long way to go and looks so weak that it might not bounce before it collapses. ITRI would be a perfect setup if not for the lack of clearly weak price action. But the failures at the moving averages and the tick higher in distribution makes it look bad enough. GOOG is breaking down on heavy volume and is so weak I am afraid it might not bounce again so I would like to get a bit back that I covered yesterday. FSLR and PKX are not failing on huge volume but both stocks are hitting resistance zones and reversing on an increase in volume that makes for good places to add back the short that we covered for profits at lower prices. At this point, all shorts are very small for me, besides the seven big-cap former-leaders and the chemical stocks when their time comes.

new CANSLIM former-leaders short positions: AMZN BIDU RIMM

AMZN is putting in a very bearish reversal at the 200 day moving average, on above average volume. Cut your first loss with a close above the 200 DMA, your second loss with a close above the 81.43 level, and your final loss above the 50 DMA, if the stock does not move lower immediately.

BIDU is failing near/at the 50 day moving average, on very strong volume. Cut your loss with a close above the 50 day moving average, if the stock does not move lower immediately.

RIMM is failing near/at the 50 day moving average, on below average volume. Cut your loss with a close above the 50 day moving average, if the stock does not move lower immediately.

new short positions: SU ITRI

SU is failing at the 200 day moving average, on very strong volume. Cut your loss with a close above the 200 day moving average, if the stock does not move lower immediately.

ITRI is reversing and failing at the 50 and 200 day moving average, on above average volume. Cut your loss with a close above the 50 and 200 day moving averages, if the stock does not move lower immediately.

adding to existing CANSLIM former-leaders short positions: GOOG FSLR

GOOG is reversing below the 200 day moving average, on strong volume. Cut your loss with a close above the 595 level, if the stock does not move lower immediately.

FSLR is halting at recent resistance near the 50 day moving average, on very strong volume. Cut your loss with a close above the 50 day moving average, if the stock does not move lower immediately.

adding to existing short position: PKX

PKX is reversing and failing at the 200 day moving average with the 50 day moving average right above it, on below average volume. Cut your first loss with a close above the 200 day moving average and your final loss with a close above the 50 day moving average, if the stock does not move lower immediately.