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Please click the screen shot below for a larger view of my “12631 FINISH HIM! SHORT KILLER SCREEN” inside The PPT. Here are today’s readouts for stocks that are heavily-shorted and have bears on the run. The idea is to squeeze them and force them to cover as these high beta stocks push higher. It is one of my favorite custom made screens in The PPT that I share with 12631 members all the time.

It appears as though we are still consolidating today, as opposed to seeing a high energy upside breakout after the past few days. Particularly for swing traders, your price entries do matter and often play a role in how well you can patiently sit through each digestion. After all, bull runs take the stairs up, not the express elevator. Thus, there will be plenty of days before we reach the top where it seems like we are topping, but in reality we are just slowly grinding higher.

Inside 12631, we are in quite a few long swing trades from lower prices and are sitting tight during this consolidation. The focus remains on looking for continued rotation to other parts of the market setting up and re-setting behind the leaders, such as fertilizers like CF MON MOS SQM.

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It is natural to think of HOG and its classic and cutting edge motorcycles when conjuring up images of “recreational” forms of outdoor products. HOG‘s chart, however, has been lagging and is still trying to reconcile a declining 50 day moving average. While that is happening, though, two other recreational vehicle stocks are looking better by the day, in ACAT and PII. Hat tip to 12631 member @jmcookjr for pointing out the hot action there this morning in our chat room. Note that buy volume is running above average for both stocks as PII breaks out and ACAT tries to emerge from a tight technical base.

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On the weekly chart of Wells Fargo below, not that each time the stock has popped its head above $34–specifically $34.25–in recent years it has been met with a heavy bout of selling. Indeed, price has memory. However, this time around Wells has not seen heavy supply hit with its recent adventure up to these multi-year levels. In other words, the stock is coming to terms much better this time around with this key resistance level, and the presumption is that much of the supply over the past few years has been worked off, meaning everyone who wanted to sell up here likely has already done so.

I am currently long WFC inside 12631 with some nice cushion on a winning trade, and positioned for a major breakout here in the coming weeks. Should the stock break below $33.50 with heavy selling coming back in I would be compelled to reconsider the position and bull thesis.

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