Wednesday, August 11, 2010

Did you set your alerts?

I've been answering emails this am, but there are some of the stocks on our list that have triggered.

SPY looks set for a bounce so this enables you to get in to any of these short positions at better pricing.

Here re some that triggered

CCRT
ANF
FBN
FNSR
GS
MCGC
WLT
AAPL

Remember that there re typically as many if not more closes up then down even in a downtrend, just the closes down are more significant, so you may enter a position today and see the market up tomorrow, this is not in and of itself any cause for concern, it's typical bear market price action, but it also allows you to enter shorts at better pricing. That being said, the last few serious downtrends saw 1-3 days down big and then several days close up but not make much progress so I can't say that tomorrow you will see an up day. One way to handle this is to phase into your positions, this is not the same as dollar cost averaging a loser, this is a pre-planned entry on a presumably winning position.

Also I would consider adding some of the long inverse ETFs to the mix-they can be found on June 3rd of the June watchlist, they will give you more leverage, however real shorts have advantages that we will discuss tonight so I like to use a blend.

If you think you missed the boat on any of these, let me remind you that at this position of the last Head and Shoulders top we saw a 50% decline in the market, on average stocks will have declined a lot more then the market so this is just the start if it is as I said I believed last night.

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