If I had more long exposure, I'd probably just grab a dart, pick 5 of the names below and toss 2% allocations into a basket of stocks -- they all have quite similar set ups and very nice entry points with obvious stop loss areas that in many cases are only 1-2% higher. But with so many stocks of interest from the long side so extended after this rally, and so far away from any support, I don't want to chase those names. Hence, it's difficult to expand the long side of the book... which would allow me to expand the short side and remain somewhat hedged.
I mean, c'mon. Are we just going to run stocks like Macy's (M) up nonstop? I understand a great many Americans no longer are paying their house notes and are living "rent free," so they have an extra $1200, $1500, $1700 each month to go shopping for clothes and other things they "deserve," (best.stimulus.ever.) but this is getting obnoxious... (Click charts to enlarge)
Among the candidates on the short side...
Last (and least), if you are a momentum trader who chases stocks to the upside (like Macy's above) here is the complete opposite to the downside. This one has to be due for an oversold bounce soon... but, then again, one would think Macy's is due for a pullback as well. But a body in motion seems to remain in motion in both cases. Eight days in a row down, and 11 of the past 12, while the overall market surges... ouch.
Disclosure: No positions