Friday, August 6, 2010

Bookkeeping: Short Whirlpool (WHR), Global Payments (GPN), Gentiva Health Services (GTIV), Covering TNA

It could go either way in the intermediate term so without a clear signal I am going to add a few more hedges to the short side.  It looks like that 1106.44 gap won't fill today unless we get our patented HFT bum rush in the last 10-20 minutes, so I am going to cover my TNA.  I made a quick 3.5% down from about 4.5% I had at the worst of the selloff.The shorts here are completely technical, unlike the longs which are a hybrid of fundamental and technical.

Whirlpool (WHR) was a stock I attempted to short last year as I tried to fight Ben Bernanke's QE1, so perhaps this is ironic I am trying again.  I am starting small with only a 0.9% exposure as the stock breaks below the 200 day moving average for the third major break in the past 45 days.  It has been trending down for a few months, and the 20 day moving average has been a good place to short the past 6 weeks.  That is currently up in the $87s, so while I am establishing a foothold I want to short more either on (a) a rally back to the 20 day or (b) a new low below $82.  For now I am only allocating 0.9% this way - the stop out would be a break over the 20 day.

Global Payments (GPN) miffed on earnings, but unlike most stocks I've been following rebounded immediately.  It has now rallied back to its 20 day moving average, where it has been hanging around this week.  That level is currently $38.14, and just a dollar higher we have the 50 day moving average which should provide another level of resistance.  While familiar with the company this is the first time trading it long or short, so always a bit hesitant to go hog wild until you 'feel' how the stock acts day to day while owning it.  I will begin with a 2% exposure, and a stop loss will trigger if the stock jumps over the 50 day moving average by a decent amount.  Say $39.40ish.

Gentiva Health Services (GTIV) - quite a similar chart to GPN, so I'll short with a 2% exposure here as well, and cover with maybe a 3.5% stop loss.

In the "scratch my head" category I have had a limit order to short Vulcan Materials (VMC) at $48.00 for many weeks, and it did not hit back in late July despite touching that level.  Perhaps there was not enough volume to trigger the trade, but this would have been an excellent hedge.  Unfortunate.

In the "darn it" category, I had a short on Ross Stores (ROST) out about a month ago, and it turned against me, stopping me out.   Once I covered I did not look back until today.  Unfortunate.

Short Whirlpool, Global Payments, Gentiva Health Services in fund; no personal position


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