Eric,
I play PUTs alot, mainly on indices but also short stocks. This is not to start an arguement, but I would like to express why ANCR is not a great short at this time.
Dont get me wrong, I am not turned away by those shorting ANCR - frankly I dont think there are enough shorts. I realise that such comment may surprise many who hold ANCR long, but many do not realise that shorts also can help stocks move to the upside.
Here are some basic rules I follow for shorting stocks:
1) Dont short momentum stocks since a bit of good news could send it up strong. Bad news can also send momentum stocks down hard also, but is it wise to play for news? -
2) Look for stocks which show technical weakness, such as double tops or some other bearish patterns like lower highs or lower lows.
Right now ANCR has higher highs/higher lows and yet to give a strong technical hint of a top
3) Pick stocks with over 1,000,000 average daily volume. Stocks with lower volume can be more easily manipulated in either direction.
ANCRs volume is about 1/2 million. Yes it can also be manipulated to the downside.
these are just a few rules I follow picking stocks to short. Dont get me wrong, if you are nimble enough you will probably make some money but not sure if it will be alot. Of course if a bear market starts your chances increase.
Right now, I feel that the downside potential is around 13, and around 10 if the correction really gets bad. On the other hand there is a chance that the 15 support could hold is the correction is mild.
seeya |
