Wednesday, June 23, 2010

Shorting Season has Arrived

The ASX200 has retraced to the levels that we think are near the perfect retracement - along with the intermarket themes that are indicating a short term pullback at the minimum, I have shorted a lot of stocks throughout the day.

I had added to my 5 shorted ASX contracts @ 4509, but unfortunately got stopped out intra-day, missing out on a 20 point swing.

However, I have shorted 1700 FMG, 70 RIO, 100 NCM, and closed my IAG long, to have a portfolio positioned to take advantage of a few days of weakness.

Short 100 NCM @ 35.36

- Gold is hovering near highs, due to correction
- Broken trendline on 15 minute
- MACD is trending down

Stops just above 35.65

Short 70 RIO @ 70.78

- Trendline broken
- similar themes as FMG
- MACD in downtrend
- target at least 69

Stops 71.77

1000 FMG short @ 4.42, 700 short @4.47

- Market is falling
- The price breakout has now reversed below 4.48 - indicating a bull trap
- Volume on the current upswing has been falling rapidly
- Baltic index is also falling - predictor of mining stocks.