You gotta love a mindless and massive gap-up on the first trading day of the year, especially when short-sale target stocks like CRM and FOSL reversing on the day after gapping up with the market like so many pieces of bait being cast to the fish. Even if you get stopped out if you are using tight stops on any of these, one must always be ready to come back and short 'em again if they weaken. CRM is having some trouble getting through this 102-105 zone, while FOSL could not even rally up to its 20-day moving average and is now pushing back below the 80 level. We are not averse to being short these, which we are currently. So far that appears to be working, but anything could happen going into the close and after the Fed minutes are released in a little over an hour from now, so while we see some favorable action here shorting these into the gap-up, we recognize that we could still be stopped out at any time as the day is still young.
SSS - Thoughts on the Short Side on the First Trading Day of 2012
| Published: | 3 Jan 2012 17:50 ET |
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