Bearish Setups Holding On During a Market Melt Up

This market melt up is extremely common when a large amount of shorts are found with their hand in the cookie jar.

What happens here is the market slowly bleeds out the last remnants of short sellers from this market, and while the rally isn’t as big as the initial few days of the rally, it is enough to start convincing the bearish stalwarts they need to get out of their positions. And what will ultimately frustrate the bears is when they are out of their positions and the market starts to move lower again without them.

That is why I am very aggressive with booking gains to the short side when I find myself on that side. And let me just say, for nearly all of June, I was shorting this market. But I have seen time and time again, just how aggressive the snap back rallies can be. And maybe we are just in a dead cat bounce right now, and if that’s the case, their will be a time where I’ll need to exit out of my long positions. But right now the market is melting up and with it burning through the profits of the short sellers that refuse to cover their positions. 

The list below represents all the short setups I am following right now – no position in any of them. But I keep this list handy just in case this market is ready to take stocks lower yet again. But until then I remain a guarded bull, ready to flip sides once the market dictates that this pop that is currently underway is done and over with. 

Here’s the list of bearish setups to watch:

ACM

ACI

ARMH

ATW

AVGO

AXP

BBBY

BEAV

BEN

BIDU

BK

BKD

BP

BWA

CA

CBI

CBS

CMI

CSIQ

CSX

DKS

EDU

FCX

FFIV

FLS

FSL

GE

GNC

GOGO

GPRE

HES

HP

HPQ

ICON

IDTI

INFY

IP

JKS

JNS

KAR

KEY

KLAC

KND

KSS

LLTC

LM

LNC

LVLT

MAR

MAS

MAT

MDRX

MGA

MGM

MHFI

MRO

MTW

NBR

NFX

NVDA

OAS

OI

ON

PH

PWR

QCOM

QEP

RDS.B

RRC

RY

SGY

SLB

SLCA

SNE

SPLS

STLD

TAP

TD

TROW

TTM

TXT

UPS

URI

VIAB

WFM

WLL

WU

XOM

YHOO

ZION

Once again, I am not looking to add any of these short positions just yet. I am remaining patient and will wait for the market to dictate when it is appropriate to start shorting stocks again.