Tuesday, March 23, 2010

Bookkeeping: Short Athenahealth (ATHN) ... Again

TweetThis
I plan to remain disciplined even in a market that only goes in 1 direction and keep sending out scouts on the short side, even though most return decapitated.  After a big pop on earnings (which we fortunately covered our short just hours before), Athenahealth (ATHN) has fallen back below some moving averages, once more giving us a solid entry point and a "bad chart" to offset the 90%! of stocks now above their 50 day moving average.

Again I will short a 3% allocation around $38.50 and assume I will be blown out of the water if the S&P jumps over 1170 (it's just a matter of time isn't it?)



As an aside, part of this 'game' is pure luck - I had mentioned both Shanda Interactive (SNDA) and First Solar (FSLR) as bad charts last week but they were not my first 2 choices; instead I went with 2 names that were stopped out within 24 hours.  I should have gone with option #3 and #4 in retrospect - SNDA even announced a stock buyback yesterday and still can't find life. Talk about dispiriting.



With so few stocks below the 200 day moving average - these are serious outliers.  If the market is ever allowed to sell off again, I assume they would really begin to take body blows.

I still have my 2 retail shorts (bras and $300 jeans) which somehow I have not been stopped out of yet (just missed by a few pennies on one of them this AM), even as retail stock after retail stock surges to the moon. 

The British pound also remains a mess as the "mini US" swirls around the drain.


Short Athenahealth in fund; no personal position

x

Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012 FundMyMutualFund.com