As noted this morning, I went short coal, natural gas and steel stocks this morning. Here are the trades:
Short 200 shares of ACI at $65.24 (closed at $62.23).
Short 100 shares of APA at $123.37 (closed at 116.96).
Short 100 shares of X at $163.56 (158.17)
Short 200 shares of ZEUS at $59.67 (closed at $56.96)
My strategy was to short on today’s strength stocks within these sectors that had broke down below the 50 day moving averages. I stayed away from stocks still above the 50 day MA. That’s why, in the coal sector, I picked ACI over ANR. ANR is still above teh 50 day MA.
As you can probably guess, stops are placed above the 50 day moving average. Take a look at the charts below and you will notice similar patterns in all of the shorted stocks.
Yes, I am still holding on to SSO. To the commenter who thinks I should have been stopped out—-my stop has not been hit. I don’t like to give away my exact stop for fear of too many placing it in the exact same place I did.