The market is punishing most any stock that fits the following criteria:
- Highflyers, especially not profitable highflyers
- Disappointing earnings reports and/or guidance
- Is in the solar industry
- Has been attacked in public by a shortseller
- Has the stock symbol $AAPL
I’ve been adding some shorts and reducing our longs and, along with having some SPY put hedges, we’ve got the playbook positioning set up well for us. Except for…
I’m angry at myself for this Fitbit loss today. No excuses, I just should have done better. Mea culpa.
I’m holding my $FIT steady for now, because I do think it could come back and trade closer to $20, but I’m going to do some soul searching about it this weekend.
On the other hand, our recent short, Hubspot $HUBS is down -8% from its highs earlier today. I’ve been patient this morning as I wanted to let any sort of a short squeeze play itself out before I add to our HUBS short. I think there were some $HUBS shorts who covered in a panic this morning. Now reality setting in perhaps. I don’t think unprofitable highflyer stocks are going to stay highflying as the market is punishing such things as I noted above. I’m going to go ahead and add another 1/3 short position in the common stock today and look to build this position bigger in the next few days.