Trade Alert: Going Short

Taking advantage of an up day to enter some bearish trades.

Adding Short Exposure

When the market goes down, it’s nice to have some positions that are going up. With that in mind, I’m taking advantage of the up day to add some short exposure. This is the screen I ran on Chartmill as a starting point for looking for potential short names:

• Share price above $3.

• Has options traded on it.

• Overall technical rating of 4 or lower (on a scale of 0-to-10).

• Overall growth rating of 4 or lower (same scale).

• Overall valuation rating of 2 or lower (same scale).

• Piotroski F-Score of 2 or lower (on a scale of 0-to-9).

• RSI > 30 (so not oversold).

• No insider purchases in the last 3 months.

That screen generated 22 names. I went through that list and eliminated each name that beat earnings or revenue estimates in its most recent quarter, or otherwise had any materially positive recent news.

That left 6 names for us to bet against.

Details below.

Bearish Trade #1