Here is why I am shorting QCOM..

[Trend Fader]

I have been making some good money on the long side the past few months... now its time to try a short...

QCOM failed to rally with the broader market as indicated in the chart below... The relative strength line for QCOM is poor.

The chart looks like a head and shoulders pattern... and the stock is on its way down... as of now.. I am short a few thousand shares of QCOM... my stop loss is at $33.01.




--MIKE

 

[maxpi]

Next stop on the trip to the downside: $28.00

Max

 

[taodr]

When SARS scare abates QCOM will jump, watch out.

 

[Trend Fader]

Quote from taodr:

When SARS scare abates QCOM will jump, watch out.

Thanks for the heads up.. but I am not worried... Thats why I have a stop loss...

 

[AAAintheBeltway]

The real problem for QCOM is that it is getting competition in CDMA chips. I have to think this is one the big funds are desperate to lighten up on but it's been so weak it is hard to sell.

 

[Trend Fader]

Quote from AAAintheBeltway:

The real problem for QCOM is that it is getting competition in CDMA chips. I have to think this is one the big funds are desperate to lighten up on but it's been so weak it is hard to sell.

So when is it easy to sell?

Maybe into strength and try to pick a top?

Or when the market is showing you it wants to go lower?


--MIKE

 

[limitdown]

Quote from Trend Fader:

I have been making some good money on the long side the past few months... now its time to try a short...

QCOM failed to rally with the broader market as indicated in the chart below... The relative strength line for QCOM is poor.

The chart looks like a head and shoulders pattern... and the stock is on its way down... as of now.. I am short a few thousand shares of QCOM... my stop loss is at $33.01.




--MIKE

so how are you shorting QCOM?

short the SSF's? QCOM1C
short the calls (naked high margin trade)?
long the puts?
synthetic short position?
short the futures/long the equity options/short the equity?

how many different ways to sunday have you hedged this call?

 

[Daal]

this sounds like a trandingmarkets thread

 

[Trend Fader]

Quote from limitdown:



so how are you shorting QCOM?

short the SSF's? QCOM1C
short the calls (naked high margin trade)?
long the puts?
synthetic short position?
short the futures/long the equity options/short the equity?

how many different ways to sunday have you hedged this call?

No hedge.. just shorted a few thousand shares of common stock.. with a stop loss at 33.01. This is a directional trade no need to hedge... worst case I get stopped out a higher price than $33.01... if thats the case.. I accept the outcome.

Why does this sound like trandingmarkets ? What is trandingmarkets?

 

[limitdown]

don;t know, who said that anyways? / why?

what I was asking is the fundamentals of shorting?

how many ways can it be done?

because that's your competition on that trade...

if I can lay off the short without it being noticed in the volume, then I'm ahead with a significant edge... (SSF's or synthetics)

if I'm short hedged, then I'd be position protecting (long equity, long puts, short calls)

just curious if you went all out, or just basically exposed to full market risk through just shorting the underlying?