As mentioned earlier today, I am working on updating all of the trade ideas on the site. As there are currently 38 active short trades, it is much more efficient to review those charts in a video format vs. mocking up static charts and the accompanying notes on all of them. Many of the active short trades on the site were initiated shortly before or after the previous market peak on Sept 14th. When the market bottomed and hit several my key downside price targets on Nov 16th, I stated that the R/R to remaining short was now outweighed by the chance of the market bouncing off those support levels. I had posted taking some longs and covering most of my shorts with the plan to re-enter (many of these still active short trades) once the R/R was more favorable. In hindsight, I underestimated the scope and duration of the bounce and began scaling back short too early but whether scaling back into some of these shorts will prove to be losing trades or just early entries on profitable trades is yet to be seen. Although the price action over the last few weeks has been undeniable bullish, the longer-term charts still remain bearish with several red flags popping up lately as some of the key indices break out to new highs.
My plan is to update the active short trades for longer-term swing traders who might still have positions in any of these as well as for those looking for some objective short entries as either hedges to existing long positions or as a pure-play on the next impending pullback or possible trend reversal, which the charts indicate shouldn’t be too far away at this point. I will also post static charts soon on some of my favorite looking short setups as well as continue to restore balance to the trade ideas by adding some more attractive longs as I find them, as many of the recent long trades have hit their final profit targets lately.
Here’s the first video update of the active short trades in which the following stocks are discussed in this order (for those who wish to skip forward to a specific trade): ALXN, AMGN, BIIB, BIS, CBL, DDS, DLTR, FCH.