Monday morning I sold short a basket of stocks. These stocks were cherry-picked from my post 14 Short Setups from the IBD 100.
 [[OTEX]] [[MA]] [[CEDC]] [[SXE]] [[FLIR]] [[LKQX]] [[WFR]] [[LIFC]]
 While it is a questionable trade, opening shorts two days before the Fed announcement, there were a couple of reasons why I decided to do so.
 1. The market is in a downtrend. Other than a tepid bounce, nothing has changed about that.
 2. These types of setups have been working very well in this market.
 3. All of the setups present clear stop loss points, i.e., it is easy to know exactly when the trade reaches the point of not working.Â
4. Since I can not monitor the action from work, either the Fed makes everyone happy, and I get stopped out, or the Fed disappoints, and I bank coin. What, me worry? Although, a case could be made that the markets will stay in a holding pattern until the employment situation is released. Regardless, you get the point.
As you can see from the quotes above, some of these positions are well in the money, and are down in an up market. And if they aren’t down, they’ve only risen a fraction above my entry. In fact, I’m up if you consider the gross achieved from selling the 8 stocks on Monday.
I have set stops on some that will take me out with a small loss, and on others I will get out break-even or with a small profit, should the markets move against me. My goal was to set the stops wide enough to allow for Fed-Day volatility without getting stopped out before the announcement.
