Short ELN?

Discussion in 'Stock picks and trading strategies' started by alpha, Jan 7, 2011.

  1. alpha

    alpha New Member

    Hey guys,

    What do you think of shorting ELN? It seems buyers are exhausted after this breakout. Volume shrank on todays trading and ended today with a gapped up doji.

    Short_ELN2_01_07_2011.jpg

    Right now its sitting on a trend line (below is a 15 minute chart). If it doesn't bounce off the trend line and falls. I think it is a great shorting opportunity. What do you guys think of the shorting stop I have placed. Are the typical stops -- after a doji appears -- placed on the prior days low?

    Short_ELN_01_07_2011.jpg

    Thanks Guys!
     
    Last edited by a moderator: Mar 22, 2014
  2. 8307c4

    8307c4 Member weekly contest winner

    Best I can tell you is don't focus on the losers, you want to win then bet on the winners.
     
    Last edited: Jan 8, 2011
  3. alpha

    alpha New Member

    Stocks move up 1/3 of the time, move down 1/3 of the time and move sideways 1/3. If you restrict your self to only long positions, I feel that greatly restricts your profits. Plus getting good at shorting a stock can really help you pick better long positions.
     
  4. 8307c4

    8307c4 Member weekly contest winner

    Yes, that is correct, you said it, those percentages are exactly what could
    happen with that crazy stock and in a short position your gain is limited to
    100% while your losses are unlimited.

    You get that?

    If you're so dang sure then why are you asking?
    You probably shouldn't even be trading on margin.
     
    Last edited: Jan 8, 2011
  5. alpha

    alpha New Member

    8307c4, I am simply posting this to for 1) too see my analysis is correct and that it is a good time to short ELN and 2) to provide a profit opportunity for someone else.

    Your right that shorting can lead to unlimited losses (theoretically) but I was not advocating that you place a naked short without a buy-to-cover stop order to hedge in the scenario of the stock going up. I would never do that. I am sorry if I didn't say that in the originally post. For ELN I would place the buy-to-cover stop at the top of the doji.

    I don't understand why shorting sometimes gets a bad rap sometimes. Plus why would you think I shouldn't be trading on margin?

    -- Thanks
     
  6. Blaine Tarr

    Blaine Tarr forum leader won penny contest 24x won weekly contest 20x


    Ladies, calm down. Nothing wrong with trading either way. Just gotta know what your doing. A lot of "longs" blame shorts for losses, when in fact they need to read the chart and realize they should have sold and went short themselves. I do know a lot of stocks are going up right now, more than are going down. So in that regards one has a better chance at buying than shorting.......

    As far as ELN, it just broke out of that nice triangle, and will have good support at the breakout level of 6.20. It may be due for a down day. If your really going to short this, use 7.00 as a stop loss and 6.20 as the target. Just my 60 cent profit thoughts..........
     

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