Today I got a call from my brokerage firm, telling me I had to cover my short position on TIF, because they were not able to borrow some shares for my short position, and in effect this would be considered a naked short position. Usually at the time when I try to take a short position, I would be advised if the firm does not have shares available in their inventory. However, they explained that at the time when I took the short position, they did have shares in inventory, but no longer do, while expressing that this is the risk with short selling, where I may be forced to cover at any time. They did say that they would try to borrow shares of TIF by Monday, and that I would be able to keep my short position if they managed to do so. However if they didn't find any shares they would be forced to cover my short position themselves while charging me a higher commission. So, I finally decided to cover my position of TIF at $35.76, taking a -2.00% loss. This may be a good think, since TIF seem to have bounced off $35.00, and seem to be trending back up.
BAC also seems to have bounced off its support level around $16.00. BAC now seems to be continuing to trade within an up trending channel. I may consider covering BAC soon, if the trend persists or let my stop loss order get triggered around $18.00. If BAC breaks up over its channel in its upcoming sessions, you may want to take a long position again with BAC. If after a new short term high around $18.25-$18.50, and starts to retreat you can wait for the share price to fall at the bottom of the channel , and wait for it to see it bounce back before going long. I think BAC will probably remain above its 50 day moving average which was at $14.50, and now at $15.00. This means that there is not a lot of space to profit in a short position. When I look at the RSI secondary indicator, BAC seem to have bounced back at the same level than in the past.
Current positions:Short BAC @ $16.96Long AUY @ $10.28
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