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Thread: YY Short Example

  1. #1
    Join Date
    Dec 1969
    Location
    Tarzana, CA
    Posts
    962

    YY Short Example

    This is an example of following the short taking method I mentioned earlier this morning.

    YY was a prior leading stock and it appears to have topped 8 months ago from a late stage base failure pattern. Since then there have been 3 bargain hunting/short covering rallies. The latest rally might be a little too energetic (high volume) but it may work anyway. Shorting the stall out at the 200-day (40-week) moving average provides the entry point around $70. This position would have been entered yesterday. If all goes as planned this position would be covered when it breaks the prior low of $50.52 for a 28% profit. If as expected the "obvious" undercut creates another short covering rally, YY would be monitored for another stall out at the 40-week for another go at it.

    As stated previously central banks haven't let a lot of shorts positions run their course so this is more educational than perhaps practical. If the market begins to let these play out normally then I would consider the next opportunities. So for now I am monitoring the situation.

    YY is on my short taking watch list, so this situation was actionable.

    Name:  YY Short.GIF
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    Mike Scott
    Cloverdale, CA

  2. #2
    Nice, it really dumped quickly. Right choice, right timing, great trade!!!

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