TraderMark

Why I'm Shorting DeVry

Whew, I thought this comment was directed at me. I looked at the article and its not even one where I either rant or name call ;)

Why I'm Shorting DeVry

Not yet, it got added to the S&P 500 - can't game that :) that's just unlucky. This news created a gap up, so it will either come back to fill that gap or exceed $47 where I'll take the loss. $47 was the recent highs as noted in the piece. Being added to the S&P 500 is a siren call for fast money traders to pile in for a short term bounce.

On the positive side its back over the 50 day moving average

A gap fill would take it slightly below - to be safe I'll probably cover some there and see how it acts

On Jun 02 08:35 AM BuffettMaster wrote:

> Looks like technical analysis has failed today. Any thoughts on changing/abandoning
> your short?

Why I'm Shorting DeVry

Wasn't a 1 day move. as I wrote $45 and $47 are the 2 key areas
if the trade goes against you take the loss and move on. But know your risk reward lines going in. I actually shorted a bit more this morning and was hoping to short at $45 but did not get there. As I wrote, I wish I had seen it the day before because the entry point would of been a lot cleaner.


On May 29 11:57 AM gcvsport wrote:

> Looks like a bad move - up over 5% today !

Why I'm Shorting DeVry

google jim chanos and you can see some detail on this same thesis. I think everyone just assumes whatever Obama does he will throw money at. Not everyone is going to get rich off Obama. In theory he will be trying to cut some costs in 1 place while adding much lard in other places. Chanos believes the fat profit margins in 'for profit' education is one place that can be hit.

My personal take is where is the money coming from for these companies? Unemployed people can only pay for so long. We'll see. A lot of this is technical in nature - the group is showing a consistent broken nature in the chart, until it changes its a nice intermediate risk /reward but in this market charts can change overnight.


On May 29 10:28 AM JPSmith wrote:

> I thought Obama was throwing money at higher education funding, which
> should allow this sector to get fat?