New Short Picks

My brother thinks I should be giving out one or two new picks a day. I look for them, so, no problem. I trade many more positions than what we talk about here, sometimes I list them all briefly, but the list is only good for the day unless I'm talking about the "portfolio," which is static unless I say otherwise. These two picks are not portfolio changes, just stocks I'll be trading today if they pull back and give me a good entry.

What I like about these stocks is that you can hold your shorts overnight and rest assured that you'll make some money in this market. If they run away from you, I suggest an 8% stop loss, or something smarter like if it crosses the 20-day average. I don't like talking about stop losses, and I haven't been stopped out once in two weeks.

SHORT - SII - Smith International - Watch for it to backtest the $24.50 area and start a short position there. Add to the position when it crosses back down over $22.50. Good scalp potential any time it hits $24 (as a short. The 20-day EMA is about $29, which would be a 20% stop loss, so lag in. TARGET PRICE $7.

SHORT - BGG - Briggs & Stratton Corp - This broke down technically yesterday, but an up day today might give us an oportunity. Look for a backtest in the $12.40-$12.60 range and short it there. The 20-day EMA is about $13.90, so maybe a stop loss at $14. TARGET PRICE $4.50.

Futures up 4.6%. Gonna start loading up new shorts today. :)

Be sure to read the long post below (S&P 400...) when you get a chance. You'll develop more nerve when your bullish instincts start making you question your short positions.

Joe