Four New Short Positions And One Stock I Am Adding To My Existing Short Position For Friday’s Stock Market Session

February 21, 2008

There are some great short setups here tonight but there are two that have excellent short chart patterns (OII and SSRI) but they are both in very strong industry group so we still have to be careful. If all of these stocks were topping and breaking down, maybe I would get more short the silver stock but for me only OII will be a large short tonight. CMTL and ORB will be small. SSRI will be medium. PTR will just be a tiny add since the chart is not loaded with distribution and red BOP. If this chart pattern was more red, in PTR, I would love to get more short. This pattern is bad but not bad enough. Be careful out there and if you are a newbie you should be 75% or more cash and COMPLETELY LEAVING SHORTING STOCKS TO THE EXPERIENCED.

new short positions: ORB OII SSRI CMTL

ORB is reversing the breakout and closing below 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 higher immediately.

OII is breaking down at the 50 day moving average and through the 200 day moving average, on extremely strong volume. This is a major reversal at significant resistance at the 50 and 200 day moving average, making this a very high quality short. Cut your loss with a close above the 200 day moving average, if the stock does not move lower immediately.

SSRI is breaking down at the 50 day moving average, which is right below the 200 day moving average, on extremely strong volume. This stock is failing right at important resistance, making this a strong short. Cut your loss with a close above the 200 day moving average, if the stock does not move lower immediately.

CMTL is breaking down below the 50 and 200 day moving average, closing at a new 2008 low, on very strong volume. This stock has gotten ugly quickly with the volume picking up on this selloff with BOP going red and the moneystream and RS line leading the price lower. It is a bit risky of a short being so far away from the 50 DMA but if it doesn’t go down immediately we can just cut some off saving us some pain. Cut your final loss with a close above the 200 day moving average, if the stock does not move lower immediately.

adding to existing short position: PTR

PTR is reversing right near resistance at the 50 and 200 day moving average. Not only that but the 50 DMA is crossing below the 200 DMA which is technically very bearish and called a “death cross.” Cut your loss with a close above the 200 day moving average, if the stock does not move lower immediately.