I Ain’t Covering

No way.  This market is in for some beating.  Volume is low today, so we should see more action this month.   What’s my strategy here.  It’s kind of weird and probably unorthodox to most traders out there, but I’m using (as I’m accustomed to) support levels of  leading stocks.  Here’s my initial check-points to cover or add to shorts:

I’ve been freshening up on my Java programming skills so excuse the conditional statements…

Test for Short Aggressive

If: 
AAPL < 190  (Apple usually has a multi-day spike to the upside after releasing products.  With the release of iPhone 3gs, ipad, nano-video, we instead see AAPL trading on the bottom of its 25 point channel.  The real question is, where is the momentum?) 

GOOG <500 (very interesting volume action in the last 20 trading days.  Compare to past 3 months.  Signalling medium-long term reversal to the downside)

BAC < 15  … < 14  … <13   (short market or this stock at these checkpoints.  The stupidest stock of 2009 seems to finally have hit the ceiling around 18.xx – 19.xx.  Lack of news and Government intervention will send traders moving elsewhere.)

VPRT < 49  (one of the best companies to emerge in the last decade, Vistaprint is vulnerable to a young CEO who is mixed up with too many partners.  Well, that’s not really a bad thing, but the fact that VPRT is partnered up with many companies like FedEx, Office Depot and Home Depot, we can use VPRT as a measurement for how well small businesses are doing in America.  There probably are too many variables to get a strong correlation, but all I know is that if VPRT starts taking a downturn, then it will reflect well on how business-providers and a big chunk of American companies are doing.)

AMZN < 107 (I don’t know why, but I always liked shorting AMZN under 107 for safety.  Anyway, AMZN is still a favorite leader I like to track to give me an idea of how the retail sector is doing.  Yeah, it’s online, but it’s big enough with a lot of customers to tell us enough about our spending habits.  The price-volume action of January is showing signs of medium-long term reversal, much like that GOOG.  Be careful if you’re holding long here.  You may want to consider buying some puts in the 90s five to eight months out.

Anyway, that’s my notes on how to make the transition from a short-term short, to a more aggressive play.  We cross those lines and I begin to go into survival, back to the wall, James Bond mode on this market.

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