Shorting Stocks

Profit taking finally hitting the market, after a huge run up.  The last two days have been brutal for the bulls, with the Volatility Index (VIX) hitting its highest level since August 17th. That’s five months to be exact. 

If you haven’t noticed it lately, every time I post my list of short setups, the mood is never that uplifting.  That is because of all the things I do here at SharePlanner, nothing “feels” more like a waste of time, than putting this list together each week. 

A glimmer of hope quickly gone for the bears. The bulls have bounced back pretty well today. It is an impressive day for sure and if things hold up, they will be establishing new all-time closing highs. 

The bulls are in full control. Until then, shorting the market serves little to no puprose.  While I’ll still continue to post these lists of short setups, shorting these stocks or the market as a whole would not be considered the path of least resistance. 

It’s Day 3 of 2018, and the market is still pumped about it’s prospects for finishing higher.  The SharePlanner Reversal Indicator suggests that there is more upside to this market, though it does seem we are closer to a near-term top, than we are a bottom. 

The shrinking list of stocks to short There will be more to come in the weeks and months that follow, and at various points throughout the year, the list will certainly be bigger than the one below, but with the market back in rally mode over the last two days, the list has shrunk considerably. 

Today was considered the start to the infamous Santa Rally for the stock market.  Let’s just say, that the start came and went, and nothing significant really materialized. 

Yes, I am still compiling my bearish watch-list each and every week, and rarely has there been a day in the past year, where it has come in use.  Nonetheless, I remain vigilent in its preparation and once again, I provide it to you in one of the most bullish months of the year .

If you glance at the indices, you wouldn’t realize the market is actually fairing poorly today.  Breadth is actually negative VIX is trading 3.5% higher The percentage of stocks trading above their 40-day moving average is declining.  Technology is trading lower Small Caps are in the red

The last few days have not been the best of days for the market.  Volatility is perking its head up some, and the technology sector, which has been the market leader for all of 2017, has shown signs of profit taking over the past week.