With today being a slow day I have update the official short trade ideas, with the following trades to be moved to the Completed Trades archives as they have recently exceeded their suggested stops.
NFLX (Netflix Inc) hit the suggested stop for a 5.6% loss on Dec 28th but is on watch for another short entry as the negative divergences continue to build. Looking at the 10-year weekly chart, NFLX appears poised as one of the more attractive long-term shorting opps in 2018 & quite possibly beyond as the stock has started to hug the primary uptrend line with the momentum indicators lagging, indicating that the current bull market in NFLX is most likely in its final stages.


BABA (Alibaba Group) hit the suggested stop above 181.10 for a 7.6% loss on Jan 2nd & will also be moved to the Completed Trades category. BABA is currently challenging it’s previous all-time highs with the momentum indicators significantly lagging behind price (i.e.- negative divergence).  As such, any new highs in BABA soon will be a divergent high which increases the chance of a failed breakout.
BABA daily Jan 9th

BABA daily Jan 9th


As of now, the only Active Short Trade on the site is OSTK (Overstock.com) as I’m am being extra selective on short setups at this time as recent uptrend in the broad market has been resilient. I’m still expecting at least a mild 1-2+% pullback in the broad markets to start this week & should that materialize, we’ll just have to assess it as it goes to determine if it will simply be a quick pullback shorting or buy-the-dip trading opportunity or if the charts start to indicate that it could develop into something more.