Celanese: Time to Cover My Shorts

| About: Celanese Corporation (CE)

I am going to take a quick gain on the Celanese (NYSE:CE) short I put on earlier this week. It has quickly fallen 5% from my entry so I'll take profits here and try to find a similar candidate.

What I've done is build a portfolio of names on the short side, generally in the 1.5-2.5% range, and as each comes in I'll take profits and try to find a suitable replacement - especially with a market that can go either way at this point. My stop losses have been in the 2-2.5% range and I am looking for gains of 5%+ if possible. So, I'm trying to put the odds (2:1) in my favor. I'll look for bigger wins if the market can drop below S&P 1108 and stay there, otherwise I'm just darting in and out with some short-term hedges to offset the long side.

I'll place a limit stop order back near where I originally shorted CE as well, in case the market rallies and takes the stock up with it. Obviously, if the market drops this has a potential for a move to $26 in a snap. (Click to enlarge)

It would be very nice to return to the market of pre-2007 when "student body left" trading did not dominate and you could make money by shorting bad charts while concurrently going long good charts.

Disclosure: No position

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