<font color=green> OVERBOUGHT SHORTS: MANU, PVTL, SRNA, PRSF All on our SHORT PLAY LIST (as overbought) for Wednesday in addition to our regular "BLIMP" list.
Although not in the same category of the overvalued blimps, these can and do become short plays. HOW? te opposit.. the stock is in an uptrend. One day a major resistance level Everything looks rosy, the stock has broken maybe a year high or a significant resistance level that it was having trouble with before(key moving average, break above ascending triangle, symmetrical triangle, cup and handle chart pattern to the upside, or upper bollinger band) is broken to the upside).
MANU had broken a cup and handle chart pattern to the upside.. at 113 and continued to an incredible new high of 132 1/8. This stock was getting toppy, the stochastics were overbought, MANU was getting 'blimpy'.. and its still quite at a high valuation. Good 'fodder' for a possible short play, especially in the backdrop of nasdaq dropping through support and other like ELNT had set a precedent JUST ONE DAY PREVIOUSLY WHEN WE SHORTED THAT ONE TIMELY.. MANU was a short play just waited to happen. It was on our short play list today and it was ripe for the plucking. Along with MANU PVTL, and SRNA (PRSF was not overbought but a failure to hold a 20 period moving average breakout)
So we have two categories of short plays: The overbought stock in market of falling NQ's, moving against "opinion" and just overbought and topping.
The continuing downfall of the overvalued, blimps mostly in 3 figures or trading in the 90's. |
