I have some high beta on the long side, and I am pairing it with some high beta on the short side now, but I am starting small since the market has potential upside to 1095ish. I am going to begin starter shorts in both Amazon.com (NASDAQ:AMZN) and Priceline (NASDAQ:PCLN), two companies I actually like fundamentally. Right now they have broken charts but, of course, that can change in student body left trading overnight.
Amazon.com is coming into resistance. I debated shorting it yesterday but was hoping for a pop closer to $119. So far it has not come, so I am going to start just under $117. There is a huge gap objective down at $95, but either way I will be out of the way ahead of earnings. (Click to enlarge)
Priceline.com is much more straightforward. It is converging on both the 50- and 200-day moving averages. Either it clears them or does not; easy as that. I could be out of this one in minutes as I won't give it much leeway... maybe $5-$6. I'm shorting just under $200.
If these are rejected (which would coincide, I assume, with S&P 1070 being the top of this bounce in the S&P 500) I will add to the shorts. If they begin to pop their head over resistance areas, I will be out. Hence, I am only throwing about 1% into each since I'd rather short stocks closer to S&P 1100.
These are cautionary, small shorts just to get something on the other side of the book, which I evacuated the past two weeks. If the S&P 500 can gain 25 points more or so I'll be much more aggressive adding to the short side.
Disclosure: Short both names mentioned in fund; no personal position