Small Caps Want To Break

Lucky 7: My Best Performing Shorts Today

The small caps want to break. They really, really want to break. Yet, the sides are evenly matched. On one side, cold reality. On the other, a hot printing press. Watching prices ricochet up and down in perpetuity is getting embarrassing. Honestly. This is a joke:

The longer-term picture shows that the /RTY has indeed fracture its uptrend, but it hasn’t “let go” because it isn’t being allowed to do so.

I would like to be extremely aggressive. This is, simultaneously, an equity bear’s greatest opportunity and most horrendous living nightmare. If the idea is to short overvalued stocks, it’s a candy store. But, as clearly has been shown, overvalued can go to insanely overvalued. If companies like Tesla (NASDAQ:) has be brought with P/Es of 1300, anything is possible. If a one-trick pony like Zoom (NASDAQ:) can be worth more than General Motors (NYSE:) or Ford (NYSE:), we’ve clearly lost our collective marbles.

Thus, I’ve dialled it back to 54 live short positions and 63 potential ones waiting in the wings. Historically, September is supposed to be the most bearish month of the year. Since these are, shall we say, nor normal times, I’m counting on nothing.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Tim Knight

Leave a Reply

Your email address will not be published. Required fields are marked *

About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.