We will try the BHP Billiton (BHP) short again after an unsuccessful attempt middle of last week. The stock peaked intraday at $62 mid June when reflation was the sexy trade of the day. We are almost back there - meaning we are about to create a double top (which is bearish) or break through and make a new run. If the former we are positioned pretty well here, if the latter we'll take our marbles and go home. I expect if the computers take this market to S&P 1000 we'll be stopped out very shortly as almost all stocks move in correlation with the market nowadays. Which begs the question why bother shorting individual stocks when they are all just proxies of the stock market (moment of reflection)
We are putting a 3.5% short allocation in at $61.60s range. This will be stopped out at $63.50 which would allow for just over a 3% loss. Our targets remain the same as last week, there are gaps below both $54 and $52. The former target would give well over 12% gain so a 4:1 ratio in terms of win v loss.
Long/short BHP Billiton in fund; no personal position