Give a Short the Good Olde College Try

Good Evening and Happy Mother’s Day. I believe the short thesis I’ve been tossing around here is coming to a head this week. I’ve marked up some weekly charts of the DJIA, S&P 500, Nasdaq, and Russell 2000 since the start of this bull market in 2009. Given the price action over the past couple of weeks, the mid-February rally across the indices has cooled into a consolidation. Maybe it’s stalling. Given the (contained) pullback, I’m stalking price action in the indices to monitor a potential move back up – a move I’d like to attempt to short. If you’ve read my posts recently, I think May has the potential to turn quite negative.

I’ll be back tomorrow with my favorite short ideas. I’m also looking for some longs/hideouts/rotational beneficiaries to keep myself honest and avoid leaning too far in one direction.

Stay nimble.