Thursday, February 28, 2013

Adding to DE Equity Short

This brings DE up to about 2/3rds of a full position size, it's already in the green with the average position at $89.38. Remember that DE does pay a dividend with a yield of 2.10%, if you are short the stock when it goes ex-divy, the dividend comes out of your pocket, however these things don't bother me, .50% a quarter, I'd hope the position would do much better than that.

 This 2013 level above $87.50 seems to be playing an important role for DE.

 This is the daily chart of MoneyStream, obviously there looks to be some serious trouble here.

 The daily chart of 3C going back to strong accumulation at 2009, most of the time DE was in line with 3C or there was price confirmation, it got a little sloppy in 2011 and 2012, but 2013 seems to be a dramatic shift, as if all the institutional longs that entered in 2009 are long gone and there just so happens to be a price pop in the area which they could sell in to as dumb money flooded the market.

 The 4 hour chart also looks interesting in the area.

 Here we see some accumulation and I believe the 15 min chart is about ready to turn negative, why?

Divergences go from short timeframes to longer ones, the 10 min is already negative, the 15 would be next.

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