Over the last few months we’ve talked about the diminishing number of short setups as even the weakest sectors and individual names begin to stabilize, however, we’re still open to short opportunities. So today I want to discuss what goes into our thought process in distinguishing between stocks that we want to be selling strength in, as opposed to stocks that are stabilizing and not the best candidates to short.
For the purposes of this example we’ll talk about two stocks in the Industrial Manufacturing Industry to show that while this is a weak Industry, the individual names to play this theme through are very different.