This Is Not Investment Advice
Working The Process of Finding More Single Stock Shorts
We will continue to work hard on maintaining and enhancing an open mind and remaining flexible overall while adhering to sound practices as best we can. Maybe the market rally resumes in force. Maybe the market plunges. We do not know what will happen. Right now the Money Flow on Higher Time Frames does not look bullish at all, and we will continue to try and find new Single Stock Shorts.
From this past week I’ve highlighted a few Industry Groups that are dropping like a cinder block dumped in the ocean:
Commercial Services - Leasing has caught my attention this week as it has fallen nearly 100 spots in just six weeks. What’s up with that? I am already involved with Consumer Services - Education (UTI and LINC plus a few more watching). Commercial Services - Leasing really plunged recently, and the industry deals with large, long term, and complex financing. If it is running into trouble it could get ugly.
Let’s take a look. We are going to add this stock to our Watch List for potential Single Stock Shorts.
WLFC
WLFC Weekly
Let’s also poke back in on the Consumer Services - Education. My senses keep telling me that there are several present and looming factors that could make life miserable for the for profit education space (YT is free and a better education, economic weakness and lower half unable to pay out of pocket, labor skills required shifting so much the schools are behind the curve, plus a lot more).
This Industry Group still has a handful of stocks “holding up” if you will with RS still way above 50 and even above 80. I am generally reluctant to short individual stocks if the RS is strong AND the Industry Group is still holding up. In this instance we have a Group that already nosedived and a few of the “leaders” still hanging on tight. How long will they hold up? 75% of stocks follow the overall market trend . . . .
APEI
APEI Weekly
Thoughts and observations:
To reiterate and be perfectly clear . . . . I am not currently short WLFC or APEI . . . . both are on a Watch List . . . .
Here’s the way I look at shorting a stock that still has RS above say 80 . . . . . the market might have the snake by the tail and lower half of the body (weak Industry Group, stock weakening on the chart, market might be in a correction, whatever it is) . . . . . but the snake’s head can still whip around . . . . those fangs might end up in your neck with volatility in both directions . . . .
That said, if RS is rolling over . . . . it may be useful to pay attention and see if a nice opportunity presents itself . . . .
WLFC is more of a potential short candidate right now . . . . I’ll be watching more closely on Lower Time Frames . . . . if it gets a bump up into some resistance with low Volume and lack of Money Flow turning in its favor . . . then there might be something . . .
