Some of my short positions fell this week, like, for example, DOW which was down 19.12% and VIP which was down 8.97%. This has had the effect of making my portfolio overexposed to the long side, so on Monday I will re-balance by shorting one of the following three stocks:
What to short: NI
How much to short: 344 shares (based on a hypothetical $10,000 portfolio and risking 3% on the trade)
Current Price: $9.68
When to cover at a loss: Based on the stocks volatility, my method says to place a buy stop at $10.55
When to cover at a profit: After a close above the 50dma
(Like all my posts, this post is for informational and record keeping purposes. It is not a recommendation to buy or sell any security)