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Before you Trade Today: Know the Economic Calendar! Also See This Weeks Most Anticipated Earnings (Note: Red on the Earnings Calendar Indicates an Earnings Loss [Not Miss] Consensus), & Yesterdays Insider Buys. NEVER BE SURPRISED BY EASILY ANTICIPATED MARKET BREAKING NEWS. That’s our goal here.

StockTips is NOW on Odyssey. It’s like discord but better in my opinion

TODAY’s OBSERVATIONS: Well, all of Tuesdays gains were dumped, but what would we expect given that Powell was due to Testify on Wednesday. He continues today as well. Tomorrow we have additional housing data, but most the housing stocks have already taken their licks. Nearly all of the economic news is bad news.

With that said it’s time for us to review a few, clearly not all, rules of shorting a stock. Please see below. In this market you either learn to short or be prepared to hold bags for a very extended time.

RULES FOR SHORTING STOCKS:

• Watch For Dividends: If you get caught short when when a stock goes ex-dividend you’ll owe that dividend. Ensure you pay attention to historical dividend dates.

• Watch for Buyout Possibilities: Some companies have really crappy financials but can often become acquisition targets. This could result in a serious loss if you’re short. A good example of this was ATVI when they had the “frat boy culture/sexual harassment/assault scandal. Sure the stock tanked, & I took my licks for seeing enough value in the company to add it to the buy list. However when it turned out that MSFT bought them out, the stock skyrocketed for a 40% gain. You don’t want that type of short loss.

• Consider Hedging Your Short Bet: Buying a call when going short is the same as buying a put when you’re long. This isn’t necessarily “hedging,” but it creates a situation where there’s only so much you can lose. The goal here is either to get a free call or to close out the whole position for a profit.

• Short Squeezes are Real: You may want to check the short interest prior to going short. Too much short interest can result in a squeeze on a market rally. Sure, bear markets are by definition bearish, but the bull rallies amid bear markets can come out of nowhere .. & are typically stronger in nature than bull rally’s in a bull market.

• Leg in Slowly: Just like when you’re establishing a long position, do not go in all at once on a short position.

• Short Positions are Temporary Positions: Remember, you’re not only paying a small fee (a fee that can often change), but you’re also not in it for the long haul. You want to make a profit & move on. There are a lot of things that can go wrong when short for extended periods of time. Ideally the trade should take anywhere from a day or two, to as long as a week or two. Indeed I have held positions short longer as well, which isn’t necessarily uncommon. However you would be surprised how quickly you can turn a profit in a bear market while short. Either way, how long you think you’re going to hold the position will dictate how quickly you average down … or up in this case … if you’re losing money.

FED CHAIR POWELL TESTIMONY: Continues today folks. It’s a total shit show. I’m not certain anyone believes a word coming out of his mouth. He’s attempting to be balanced & as diplomatic as possible. Yes, the economy is strong … relatively. It’s also bearish as hell for the reasons I’ve explained time & time again.

• Stock futures are little changed after the major averages dip, investors mull recession concern

• European stocks head for negative open as markets struggle to shrug off recession fears

• Hong Kong stocks rise nearly 2% as tech stocks jump; oil falls more than 1%

EARNINGS REPORTED ON 23 JUNE 2022:

BUY LIST UPDATE: It’s always tough after a market dump to add either long or short plays. Be patient folks. All of the suggested short plays I posted earlier worked marvelously! But I’m hesitant to add more given the market lows. It seems to me that shorts are holding & when they cover the markets will rally.

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PAID CONTENT IN THE PAYWALL BELOW: 1 Stocks on the BUY LIST near/at/above the Buy Zone (Waiting to Swing) / 1 Options Strategy / A Detailed Breakdown of Yesterdays Earnings Beats & Misses / Most Recent Insider Buys/Sells / IPO Lockup & Quiet Period Expirations / 10 Stocks on the Price Based Assessment Watchlist / 3 Stocks on the Stocks Under $20 List (Read the Warning/Disclaimer) / 3 Stocks on the Highly Speculative Highly Volatile Small Cap List (Read the Warning/Disclaimer) / 6 Stocks on the short possibilities list.

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