Three New Short Positions And Two Stocks I Am Adding To My Existing Short Positions For Monday’s Stock Market Session

February 29, 2008

It looks like that the mini-uptrend that the stock market has been gracing us with the past month has finally bitten the dust. While commodity stocks continue to look great and will continue to make good buys on low volume pullbacks. It appears the rest of the market is ready to take another turn down. If that is the case we should continue to keep our eyes out for stocks failing right at the key 50 and 200 day moving average line on strong volume or that are breaking down through these lines on very strong volume. Two past leaders, that might still be leading but it seems extremely unlikely, that I want to short so that they may rejoin my 02-07 bull market leaders in my shorts portfolio are RIMM and FSLR. I attempted to get a little bit earlier this year and they treated me poorly. But GOOG, AAPL, and BIDU have been very very very good to me. Another one I will be watching is AMZN. But it appears getting scared out of my short on 1/31 from the 1/25 short is going to come back to haunt me. It sure does look like we this market is ready to start trending down again. If that is the case, experienced investors can start to go back to either shorting stocks are looking for stocks that are close to a high reward/low risk short setup. Newbies, I still believe, if you have not proven to yourself that you can make a lot of money on the long side and do not have the proof via your brokerage statements that you can, that you should remain 75% to 100%. The only non-cash you should have is some commodity longs. Be careful out there and remember cash is king!!

new short positions: DECK WG WGOV

DECK is breaking down through the 200 day moving average, after failing to get back above the 50 day moving average, on extremely strong 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.

WG is putting in a bearish intraday reversal 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.

WGOV is breaking down below the 200 day moving average, after failing to hold above the 50 day moving average, on strong volume. Cut your loss with a close above the 200 day moving average, if the stock does not move lower immediately.

adding to existing short positions: WYNN CETV

WYNN is failing at the downtrending 50 day moving average, on strong volume. Cut your loss with a close above the 107.88 level, if the stock does not move lower immediately.

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