There were a lot of stocks in my main short scan tonight. But as the case has been the past few weeks, everything in the scan is either too extended from the top, is showing strong intraday support, has some kind of technical positive divergence on the chart, and/or is breaking lower on lower volume. These are not safe short setups to take. As most of you may have noticed, there were just as many shorts we covered during the downtrend as shorts that went higher. Thankfully, the gains were higher than the losses. But the point of this is that when you do NOT cut your losses on your shorts quickly you could be squeezed like DECK shorts were two days ago. I got an email today asking me if they should cover their DECK short. They said, “I know you covered it right after you went short because it did not work but I did not and now am feeling the pain.” Luckily, that individual did not make it a big position I have since found out and is very much in the game. However, he did two things wrong IMMEDIATELY. First, he went short stocks BEFORE he has EVER learned how to make money on the long side on a consistent basis. Second, he did NOT cut his loss. Two horrible rules you can break! So everything tonight is too extended and/or is not a perfect short which means we do not short anything as the market is in a slight uptrend. No volume or big volume, a rally is a rally and you should NEVER fight the trend. Just ask those that have been shorting the market recently. The NYSE short interest ratio is at an all-time high of 12.01. That is shocking. 4% of the NYSE market is short. This is insanity and stocks like MA prove that being long is definitely not wrong. I have been long MA for over a 1 1/2 years and now enjoy a 450% long-term capital gains in a MONSTER STOCK. Being long is right; never short a dull market. NEVER short a dull market.
new short positions: none
none
