PCLN Update

On Friday I added a bit to the model portfolio EQUITIES PCLN short position, here is Friday's PCLN update as PCLN is in the target zone.

As you know, since we have been in the volatility shore break zone with few trends lasting more than 1-3 day, I had been using options for short term trades of 1-3 days, in effect using the volatility to add to profits in trades that otherwise wouldn't have been worth the risk:reward relationship. About  a month ago I started building equity short positions rather than using leverage and the transition has accelerated to very few leveraged trades and trying to short strength wherever possible, but leaving plenty of room for a stop and to add, PCLN on Friday was an add to position which wasn't very big as I'm tech heavy right now. However it is still looking like a good set up and for whatever reason, this seems to be the 1 stock that I get the most emails about with regard to shorting it. What did PCLN do to you guys that you hate it so much? :) LOL!. Wherever there's money, I'm in for the trade. The reason for moving toward equity shorts and away from options is because I believe we are on the edge of a downtrending market, I don't want expiration concerns and I don't think I need the leverage although it served me/us well. I think it is just choosing the right trade for the market conditions.

 Since April 10th, PCLN has broken through all 3 of our upside targets offering many opportunities to phase in to this trade and short on strength rather than chasing a downside move. The final target area is a new high around the yellow area as posted Friday and in numerous other updates, this would be the best looking entry from a risk perspective and a bull trap/downside momentum perspective.

If I could access the model portfolio (there having some site issues today), I'd be considering adding one last position in PCLN on a break to a new high, as mentioned already though, I'm a bit heavier in Tech than I would prefer.

 This morning the stop were hit o a move below local support -see volume under support, this looks to have been a planned shakeout to boost PCLN.

 Friday 3C 1 min was leading negative in that support area suggesting short term they were positioning PCLN to break support in red, the market obviously helped out. The chart quickly jumped back in line after that break.

 As to the trend locally, strength is being sold/shorted.

 The 3 min chart with less noise shows this more clearly as PCLN is leading negative on this most recent move. Note how distribution starts slowly as to not knock the price down by selling / shorting too much and then accelerates in to higher prices.

 The 15 min chart is where we really start to care about what is going on in the longer term trend, you clearly see strength being sold for some time, it takes some time to reverse positions for large Wall Street funds, it can't happen in a day like we can trade. You also see the April 24th Tech rotation we identified before AAPL earnings after market the 24th, look at the divergence (negative) since April 24th, deeply leading negative, ugly chart for PCLN.

 The even more important 30-60 mi charts confirm the longer term trend as PCLN is seemingly dumped by hedge funds and institutional money everywhere as well as insiders I presume by the looks of the overall insider transactions.

I obviously like PCLN right here, but  break to a new high  (closing would be best) would certainly attract my attention and I'd probably add 1 more time. At least I have a decent position built there already.