Thursday, September 18, 2014

Opened Short: SLCA

I opened a short position in SLCA today at 72.34.  Why? after all it's close to a 52 high and has been fire.  Plus, I love the industry.  

Not everything is well in the sand box.  There's heavy negative divergence on this last pop.  Nonetheless, SLCA is 13% above its 50MA, suggesting this expensive relative to its normal trading range. 

By comparison, HCLP and EMES are sitting at or just below their 50MA, with selling picking up pace.

 Out of the two alternatives, I believe SLCA is more likely to retrace than EMES and HCLP reversing here.  I can place a stop at the year high and risk $1 and aim for a $10 retracement to the MA.   That's just good risk v. reward.

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