A LULU of a short

ATI - A quickie short

I searched hard to find any weakness to short, but ATI is one I will short below the rising trendline for a $1-2 dollar move.  If it bounces off that line, I am going long when it rebreaks the 20 EMA.

I am leaning pretty long, and the charts all look too conveniently bullish, this makes me nervous.

This Simply Blows Me Away

Two weeks I posted on record margin interest and how that precedes sharp retracements, now there is a chart that illutrates how leveraged investors are (see chart one), couple this with hitting resistance in the Nasdaq at extreme ratio to its 200, and the SPY at nearly record extreme levels to the 200 (April 10 was higher, remember what happened next), sentiment at extreme levels, mutual fund cash at low levels and the put/call ratio at low levels demands prudence on investors part.

This net worth chart tells me the will be tears as not everyone is going to unwind profitably. 

Two for the Short Watchlist

Here are two stocks that are sitting on their 20 with a retracing RSI.  A break of the 20 should be good for a couple of dollar move.

Shorts Update

Below, I posted on a number of short positions I have taken, with ERX this morning being my latest.  They are moving as expected, and wanted to reiterate that this move is just beginning, IMO. I commented in the charts below.  I am also short SPY PKX, PTR, and MCP (not pictured in this post).

As a caution, I am always moving stops to reduce my risks in case I am wrong.  I am only painting the idealized view.

A couple of short ideas

Below are two hard asset stocks that are trading below their 50 SMA and with RSI7 breaking below 70 on Friday.  The first stock, Gerdau, a Steel stock looks like a good short candidate, and the second stock, EGO a gold miner, looks like a good candidate for a bear call spread, especially going into OPEX.