There was only one stock that was close to being a good short candidate. But NRG shows a little bit of intraday support and the RS line shows absolutely zero negative divergence that would make this a good candidate in a low volume market. The old saying of “never short a dull market” applies here. If the market rolls over and more distribution days pop up, I am sure that the amount of stock that will be showing up as good shorts will be there. But for now it is best to keep the cash heavy as we wait for volume to enter this market. We must wait and see what the big boys are doing, before putting too much money to work either on the long side or the short side. We had a couple of near-perfect to perfect charts show up the last two months but now they have either failed or they have lost their perfect setups. However, just because great longs are now mediocre does not mean it is time to sell and start shorting the market. No, give the market time to figure out what it wants to do. Once volume returns, then we can pick our perfect spots. If volume returns while we selloff, shorting will be where we it is at. If volume returns and the pension/hedge/mutual funds come in accumulating stocks, then you can be sure I will be all over the best looking long setups in the highest quality companies. I am for sure we will see our typical pre-holiday trading session tomorrow. So be careful and don’t press any bets here. ALOOOHAAAAA!
new short positions: none
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