Looking for Some Shorts

In good markets and bad, it doesn’t hurt to look for opportunities on both sides of the fence.  Most of the time, I’m looking for bullish opportunities..whether it be a breakout or support reversal.  However, now that I’m trading full-time, I am going to spend more wakings hours standing on top of the fence instead of just playing with the bulls.  From atop the fence, you can see both sides – what the bulls and  the bears are doing. 

So, in this blog, I’m looking for short opportunities and will focus on the stuff you wear – the Apparel industry.

Should the apparel industry really be moving so well right now when consumer confidence is so low?  Seems to me that less confidence means less spending on new jeans.  No, matter – I haven’t researched this enough to know what’s driving it (earnings is my guess).  All I’m look at are the charts and looking for opportunities for short term plays – specifically, short term shorts (less than a day or two).

Here’s my list of possible short candidates – again, very short term.  The trend is still bullish on these, so look for a turn in the sector first.

JOEZ – big winner for a lot of traders lately!  I love it.  However, Full Sto is toppy and MACD is looking a little heavy, as well.  The monthly chart is somewhat telling here – 2.45 is strong resistance.  Let’s watch it at 2.35 first, then 2.45 if it makes it there.  2.45 could easily be a short opportunity back down to 2.07 range (if your broker has shares to short for ya).

LIZ – most people are looking for more, but I want less 🙂  Even with today’s volume LIZ finished well below the intraday highs.  Full Sto has already begun to reverse and RSI14 is at 70 (often bullish), but near highs. LIZ is also battling May and September highs.  Again, LIZ is still in a bull run, but I’m just looking for a small pullback.  Target pull back to 6.  5.7 would be awesome.

LTD approaching major resistance at 22.16.

TJX had a great day on strong volume, but now testing resistance from October.

ANN also had a strong day, but is now testing December and Feb 2 resistance. 

HOTT is hitting resistance at 6.6.  Actually failed to get through it today.

ANF hitting major resistance at 36.

GPS has resistance at 20.70.  However, this looks the least likely to be a short candidate on this list.

PSUN failed to make a move through resistance at 4.8

JNY, CHKE, WRC, BKE all having issues with resistance right now.

OK, you get the point.  The apparel industry has been very strong lately and most moved up well today on impressive volume.  I can’t deny the strength.  What I’m looking for is that one or two stocks from the list above that just can’t keep it going and need a few days to give back.  That will be my opportunity to scalp or swing some shorts (not the kind you wear). 

Good luck and keep an eye on the stuff you wear.



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