Using an Up Day to Get Short
Today's 200 point up-move (DJIA) is providing a good opportunity to establish some short positions. I believe further deteriation of the financials and mortgage mess, will seize the consumer spending habits. Therefore, I'm shorting the financial ETF, XLF and the retailer JC Penny.
Looking at the JCP one-year chart, all you have to do is imagine that the chart is inverted. If the stock had sold off, then rallied back, there would be many a technician ready to believe the stock has consolidated and is ready for new highs. I'm in the opposite camp looking at a rise and sell-off, now expecting new lows.
Posted by David at 8/29/2007 12:32:00 PM