One New Short Position For Wednesday’s Stock Market Session

January 29, 2008

This is a pretty good short considering how the reversal is right near the 50 and 200 day moving average. But the short could be a lot better if BOP was still red and the stock was reversing right at the moving averages. But considering how tough it is to game this current market, I guess this will have to do. If stocks continue to rally, we are going to get some nice short setups, since the rallies continue to be on very low volume compared to the heavy volume selling that is preceding them.

new short position: JNPR

JNPR is failing at the breakdown area of the January 11th gap down, on very strong volume. This stock broke down below the 200 day moving average on extremely strong volume on the 11th and since then the stock has traded a ton of volume on each subsequent day. Normally, after a gap lower, with so many bearish days (17th, 18th, 22nd, 23rd, 25th, and today), with BOP going red, you can be sure that eventually the stock will fail and continue the trend down. It seems like JNPR should be ready for the downtrend now as it is reversing here at the breakdown level near the 50 and 200 day moving average. Cut your loss with a close above the 50 and 200 day moving average, if the stock does not move lower immediately.