Last week all the major U.S. indexes cratered on volume. The NASDAQ plunged 2.7%, and the Dow, S&P 500, and NYSE composite each dropped 2.1%. On Monday, the IBD outlook once again slipped to “uptrend under pressure” and then on Wednesday rolled over to “market in correction”. So much for that distribution plagued rally. Raise cash on any strength, don’t let gains you may have on long positions turn into losses, keep your watch lists updated, and feel free to play on the short side until we see the next follow through day, signifying the start of a new uptrend.
With the market in correction, none of the watch list stocks can be considered as buy candidates.
/as usual, your mileage may vary, always do your own homework
The following stocks currently exhibit potential technical characteristics consistent with historically successful shorting opportunities, emphasis on POTENTIAL:
INCORRECTLY SHORTING STOCKS CAN LEAD TO UNLIMITED LOSSES. Proceed at your own risk.
/How to Make Money Selling Stocks Short by William J. O’Neil