Short Fashion Victims – Part Deux
It’s Sunday night and I finally had some time to scrape together the second set of our short fashion victims.
Yes, I know it’s scary and everyone is expecting P3 again – but as Baron Rothschield aptly put it:
When there’s blood in the street, buy property.
Let me precede this with a disclaimer – as you will see many of those picks still may have a bit to run, so be patient and wait for the proper entry. If you don’t get it – then do like Guido and fuggedaboudit. No use in chasing or preceding entry and we stainless steel rats only risk any coin if the entry is spot on the mark.
I’m looking at the AUD/JPY right now and it’s not looking very hot – a lot can happen overnight but it’s entirely possible we may continue downward tomorrow. Thus, let me remind you that the purpose of this exercise is to collect symbols and to be ready to strike when it’s clear that a low is in place and equities are ready to make a bounce.
Without further ado, here we go:
Okay, this is actually not a trade – it’s something I wanted to throw out for everyone. Maybe it’s nothing and maybe it’s a first warning signal for the bears. Looks like JNK pushed outside both BBs on Thursday and then snapped back on Friday. And if you are a sub you probably recall that the JNK:treasury ratio often precedes equity pullbacks. Sure it’s possible JNK continues downward but if it holds the that lower BB line then make sure your short positions don’t overstay their welcome.
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MXIM could slide a little lower – I would feel better taking a long position on a slight push outside the BBs. NLBL will be at 24.93 tomorrow – valid for five days.
I think NFX may be good to go on Monday – put a stop at 63.11 (or a little below). NLBL currently at 67.05.
RSH is in a similar position – just a bit further gone. I do like that possible diagonal support here and would put a stop below 12.46. NLBL is at 13.08 and was once rejected, so if it closes above that I think this one is going to be golden.
Frankly, I would wait for that one – let it touch that lower diagonal around 13.75ish. NLBL tomorrow will be at 15.74, so if it doesn’t drop to that line then wait for a close above that mark to get long.
ARUN looks a bit like RSH – we also have a tentative rising diagonal. I would probably wait for a retest of Friday’s lows at 23.54. NLBL is at 25.79 – that is where you pyramid up if you manage to grab it here. Of course it can drop lower from here and if it pushes below 22.53 then the trade is off and something else is unfolding.
Juicy inside candle on MTW on Friday – so you know what to do. If it drops through 14.79 then I would try again around 14.5 but keep a tight stop. NLBL is currently at 15.9.
That’s it – happy hunting!