shorting and put strategy

[catrader]

well let's try this strategy, trade on paper first and then for real.  Well you can trade for real but still testing this.

Per member Terlissa, a good criteria for entering a short position would be

I seldom short a stock but I use moving average the --->> 50SMA <<---

1) When a stock broke the 50SMA in the downside on the WEEKLY CHART (that's the safest time to short) the price will tend to go down even further... Most of the time this happens but not all the time.

2) If you want to catch a short from the very top use 5 or 9 (SMA) with a tight stop, it's better to use this on the weekly chart.

Example charts: BROKE THE 50SMA
GYI, FORD, ATML,SIRI,XMSR

this was quoted yesterday 5/1/2006.  Then Terlissa mentioned Dell might be a shorting possibility.  So just saw that thread so if we picked up dell now and shorted, it is now at $25.54 -0.11 on the day.  If buy a put, let's say a may, june and aug 25 put premiums would have been 0.53(0.50 x 0.55), 0.70(0.65 x 0.75), and 1.10(1 x 1.10).  so let's see how this would go.  and if you have anything that you think is worth shorting or going long, put it here and we can analyze.

[Terliso]

That was quoted from this thread:
http://www.3stocksonfire.org/trading/index.php?topic=4940.0

[catrader]

Terlissa,

you mentioned the sma as an indicator to shorting, but then what are indicators that maybe it has hit bottom and started to reverse?  Maybe institutional buys, volume on an up day?

[Terliso]

Terlissa,

you mentioned the sma as an indicator to shorting, but then what are indicators that maybe it has hit bottom and started to reverse?  Maybe institutional buys, volume on an up day?

Basically, I use the same thing...I use 5 or 9 SMA (50sma for safer play) to catch the trend early with a tight stop & confirmation on WEEKLY MACD Bullish Crossover.

Example CIEN:
CIEN price went above 5 or 9SMA just before october of 2004 with confirmation on WEEKLY MACD Bullish Crossover.
you could get in a little bit earlier just by using 5 or 9SMA versus TRENDLINES (vice-versa).

[Terliso]

For CIEN, I think cien is a good short NOW... price went down 9SMA, WEEKLY MACD Bearish crossover & BIG RED spike on FORCE INDEX 

[Terliso]

Shorts Lists: take ur pick

UNH, EBAY, CHS, POWI, BKHM, ADI, SCT, MCO, PANC, CYH, HHGP, LOJN...

[echo]

Of these I like POWI the most. The chart looks broken down and with falling revenues and management resigning and restating of earnings, it looks like its heading down fiurther. This. imo is a good short.

[catrader]

Of these I like POWI the most. The chart looks broken down and with falling revenues and management resigning and restating of earnings, it looks like its heading down fiurther. This. imo is a good short.

ok let's analyze, powi is 19.87 up 0.13 on the dayright now.  going short and compare to put let's say a june 20 put 0.90 x 1.10

[Terliso]

Of these I like POWI the most. The chart looks broken down and with falling revenues and management resigning and restating of earnings, it looks like its heading down fiurther. This. imo is a good short.

ok let's analyze, powi is 19.87 up 0.13 on the dayright now.  going short and compare to put let's say a june 20 put 0.90 x 1.10

[echo]

I shorted POWI today for a nice gain . I will continue to hold short as the chart looks likes its broken and the recent news is awfull for this company. Thanks Terliso (a) for coming up with some good candidates, I applaud you

[Terliso]

I shorted POWI today for a nice gain . I will continue to hold short as the chart looks likes its broken and the recent news is awfull for this company. Thanks Terliso (a) for coming up with some good candidates, I applaud you

Congrats Ultra...


EBAY is also a good short (broke EMA200 & SMA200)... it's walking down in the Price Channel it may hit below 25 before it decide to bounce back
----> current pps $31.32

[Terliso]

Shorts Lists: take ur pick

UNH, EBAY, CHS, POWI, BKHM, ADI, SCT, MCO, PANC, CYH, HHGP, LOJN...

Added some potential shorts

PG, JNPR, TEVA, ERTS, MXIM, LEH(my target $61.00), COH, AMZN, NUAN, SWKS, ADBE, JLG

Have fun!!

[nullzero]

Just got my account switched over to margin. Im ready  to short and make some cash. I think we should make this post or another one into the official short thread. Finding good targets to short. Like stocks getting walked down, bad news, bad earnings, bad technicals, Gap ups, Gap downs etc. With enough people following the same stocks we can cause some downside pressure to push thru stops and supports  . I dont like being the bad shorty but it comes down to making money in any kind of market.

[nullzero]

shorted DHI today chart looks good for some gains .

[nullzero]

Short % of float is very low for DHI 3%, I dont think a short squeeze would be very big if it happened. I think real estate is due for a major correction. I know the chart shows oversold... im setting a tight stop loss at 30.10 .  I think DHI can have a good breakdown.