Thursday, July 14, 2005

Family Stores - Time to Short?

The market shot up over a hundred points shortly after the open this morning, but I'm pleased to say almost every one of my short positions showed a profit. There's little more heartening to a bear than seeing his stocks still go down in spite of an upward market.

Interesting, the $RUT (Russell 2000), which is more closely aligned to the kinds of stocks I'm shorting than the Dow these days, went down today, in spite of the strength of the other indices.

A specific stock I'll mention - Family Dollar Stores (symbol FDO) - is shown above. I've put in blue the beautiful head & shoulders pattern. Added to which, it's broken through a major supporting trendline. Looks like a good short position to me!

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