Mike
03-13-2013, 08:32 AM
The market has been quiet, too quiet. Yesterday showed distribution on the major indices.
I am long three positions: GEOS, CBI and VRX. The Market Exposure Model suggests that I should be more fully invested. However with regards to the secular bear market that began in 2000 we have risen to the old 2000 and 2007 highs which I consider risky territory. I suspect the next big play will be on the short side but the market has been too dull for me to contemplate short positions for now. I successfully shorted BIDU on January 29 but am sitting on the sidelines until the market shows its hand. The possible short set ups I see are: DLTR, QCOR, CMG, VRSN, ALXN, SSYS, RAX, VMW. AAPL never seems to give me an entry.
QCOR, ALXN, RAX and CMG show negative LEV divergence.
I set a lower bound on liquidity when selecting short positions. I want them to trade more than one-million shares per day on average.
I am long three positions: GEOS, CBI and VRX. The Market Exposure Model suggests that I should be more fully invested. However with regards to the secular bear market that began in 2000 we have risen to the old 2000 and 2007 highs which I consider risky territory. I suspect the next big play will be on the short side but the market has been too dull for me to contemplate short positions for now. I successfully shorted BIDU on January 29 but am sitting on the sidelines until the market shows its hand. The possible short set ups I see are: DLTR, QCOR, CMG, VRSN, ALXN, SSYS, RAX, VMW. AAPL never seems to give me an entry.
QCOR, ALXN, RAX and CMG show negative LEV divergence.
I set a lower bound on liquidity when selecting short positions. I want them to trade more than one-million shares per day on average.