As the market trades bullishly tight and continues to hit all time highs, salty traders, as always, are wondering what could go wrong and prepare themselves for it. For the time being it would make sense to remain long the market until technical signs emerge that indicate the party could be over. Below are a few examples of short ideas that I believe still remain viable. They appear exactly how they were written in our daily Game Plans.

In our Friday 8/12 Game Plan we looked at YRD. YRD is a Chinese internet play up 203% YTD and 214% since inception last December. Earnings have been very solid with gains of 13.4 and 27.4% on 8/10 and 3/10 and a small loss of .6% on 5/12. The stock enjoyed a 5 week winning streak between weeks ending 7/1-29 which rose 70% and last week lost 5.2% which CLOSED 20% off intraweek highs. To its credit it has taken out 2 cup base triggers of 10.38 and 17.40 on 3/30 and 7/12, both on gigantic trade. This is a stock that was a $3 name this February and it is now 50% above its 50 day SMA, a very large number. Today it recorded a bearish engulfing candle around Wednesdays spinning top at the round 30 number and short here.

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