Adding One Stock To My Existing Short Positions For Wednesday’s Stock Market Session

Well, one of our recent shorts slightly reversed and appeared to be getting slightly bullish as it neared its final cover level (a close above the 50 DMA). However, today’s session has completely wiped out any possible bullish pattern the stock tried to get going and now looks like what a perfect short setup would look like. Now, don’t think I am calling this short perfect. It would be IF the stock market was just starting to break down from the 50 or 200 day moving average. The fact that the market is still very extended from the 200 DMA makes it very hard for me to get very heavy short, even though I want to. CHD looks like a fresh and near-perfect breakdown but with the market so far down in such a short time I just don’t think it would be wise. However, the chart would be what I would call a perfect reversal with that move at the 50 and back below the 200 on very heavy volume. The only flaw is that BOP did not drop to red BOP. That would have made me really want to get heavily short even in a market down so much. CHD is a good short for newbies to practice on. You can keep it to 5% or less of your port and give it a sho(r)t.

new short position:

CHD is reversing at the 50 day moving average and breaking down through the 200 day moving average, on extremely huge volume. Cut your final loss with a close above the 50 day moving average, if the stock does not move lower immediately.