This is meant to be purely educational....This is NOT meant to insult anyone or be mean in any way. I DO NOT usually short stocks in a Bull market.
It seems some people (....Vanzandt,...) like to SHORT non-stop in this market. What bugs me is when I see these people shorting stocks that have absolutely ZERO signs of rolling over. If I am going to short a stock I usually like to see the sector and the market dropping and the stock to be at the upper end of a trend line. It should be breaking that trend line to drop below it or at the top edge of a falling trend line. In addition I like to see technical signs that the stock is rolling over on several timeframes AT THE SAME TIME. I use weekly, daily and hourly time frames.
I search for possible stocks to trade most every night and for the last several days I keep seeing this one pop up on my radar. BUT every time I look at it it looks like the perfect short if it were NOT in a sector that I think is going to go higher. So I repeat that I AM NOT SHORTING THIS STOCK. This is a paper trade just to see if my paper trade short in a strong bull market works better than the incesant shorts some people like to make calling tops on "pigs".
I know absolutely NOTHING about this stock other than its a software company called SPLUNK. Nor do I care. Maybe SPLUNK is the sound it makes when it falls like a rock into the water. I originally saw this stock as a short on Dec. 14, 2016 and IF I had shorted it I would have done so at $56.28 with a Stop Loss at $58.72. Currently, the stock closed at $53.72. If I were to enter a trade like this now I would look for a better price to short like around $55.05 with the stop at $58.72 still.
The following charts show my TA reasons and PURELY TA reasons for shorting. Notice all the down trend lines and that this stock is at the upper edge of a down trend line on the weekly, daily and hourly charts and with EMA 39 (a simple directional indicator) on ALL 3 time frames pointing lower. I have also drawn several trendlines showing lower prices are likely. Target price for this stock is around $37 to as low as $25.
So, Lets see how it turns out,.....
It seems some people (....Vanzandt,...) like to SHORT non-stop in this market. What bugs me is when I see these people shorting stocks that have absolutely ZERO signs of rolling over. If I am going to short a stock I usually like to see the sector and the market dropping and the stock to be at the upper end of a trend line. It should be breaking that trend line to drop below it or at the top edge of a falling trend line. In addition I like to see technical signs that the stock is rolling over on several timeframes AT THE SAME TIME. I use weekly, daily and hourly time frames.
I search for possible stocks to trade most every night and for the last several days I keep seeing this one pop up on my radar. BUT every time I look at it it looks like the perfect short if it were NOT in a sector that I think is going to go higher. So I repeat that I AM NOT SHORTING THIS STOCK. This is a paper trade just to see if my paper trade short in a strong bull market works better than the incesant shorts some people like to make calling tops on "pigs".
I know absolutely NOTHING about this stock other than its a software company called SPLUNK. Nor do I care. Maybe SPLUNK is the sound it makes when it falls like a rock into the water. I originally saw this stock as a short on Dec. 14, 2016 and IF I had shorted it I would have done so at $56.28 with a Stop Loss at $58.72. Currently, the stock closed at $53.72. If I were to enter a trade like this now I would look for a better price to short like around $55.05 with the stop at $58.72 still.
The following charts show my TA reasons and PURELY TA reasons for shorting. Notice all the down trend lines and that this stock is at the upper edge of a down trend line on the weekly, daily and hourly charts and with EMA 39 (a simple directional indicator) on ALL 3 time frames pointing lower. I have also drawn several trendlines showing lower prices are likely. Target price for this stock is around $37 to as low as $25.
So, Lets see how it turns out,.....
