This is the first time in several months we have no long positions listed. The recent market selloff has taken us out of all longs over the last few days. Conversely, we have several shorts listed at this time. In the event you are not comfortable shorting stocks we highly recommend our active trader strategy education program as it has a great deal of information about selling short -- both techniques and tactics.
Current Trade Idea Updates
8/6/14: Chipotle (CMG) triggered our entry below $670.
8/6/14: GPStriggered through our stop for a loss of 1.5%.
8/3/14: GPS finally triggered through our suggested entry on Friday. We will move this trade to open in the table and continue to monitor in coming days.
7/29/14: We are adjusting our trading parameters on GPS. We now have a suggested entry price of $40 with a stop just above today's highs. We have also modified our target price of $38.20, reason being is that we still think GPS has good bearish pattern developing and this trade is still pending.
7/27/14: We are going to add Gap (GPS) to the short ideas table. Retail remains under pressure in this market and we will look to sell short GPS on a break of this short-term bounce rising support line. Currently this line stands around $39.60.
8/6/14: Todays selloff in GOGO confirmed the break of the short-term trendline we have been watching. As a result of today's down move we will adjust our stop down to $16.45.
8/4/14: GOGO put in the small bounce we were looking for today and triggered through our suggested entry price as a result. We will move this trade idea to open in the table and monitor accordingly in the days to come.
8/3/14: We are going to add Gogo (GOGO) to the short ideas table. GOGO broke down from its bearish consolidation pattern from the last few weeks on Thursday and Friday. We will look to enter this short trade idea on a bounce to the $16.40 area should that occur in the next few sessions. We typically never like to short on weakness (as a general rule) but rather on small bounces. In the event we don't get a bounce, we will not look to initiate a short.
8/6/14: Today marks the start of the more convincing move for N. We are therefore adjusting your stop down to $85.50.
8/4/14: N traded a penny below our suggested entry today; therefore, we will move this trade to open. Short-term trend lines always have a margin for error as price will change every day relative to the direction of the trend line. Although not the break we were looking for we will manage the trade accordingly as per the trading parameters listed. We still anticipate a more pronounced break of support in the days ahead.
8/3/14: NetSuite (N) has underperformed the market for several months and we are looking at this stock for lower prices to come as it appears to be setting up for a break of this short-term bounce. It may need a few more days but keep an eye in this short-term rising trendline for a break. Like any rising support level, the entry price in N may change in the days ahead.
New Trade Ideas
8/6/14: We are going to add Workday (WDAY) to the short ideas list. We want to short WDAY on a break of the short-term rising trend line around $81.50.
At the time of publication, Redler had no positions in the stocks mentioned.