*Blue Plate Specials* Portfolio – 5/04/10

Today the S&P 500 violated its 40 day moving average. According to the rules of this portfolio (see Blog 4/21/10), we liquidated all of our long positions and initiated a short portfolio of five stocks with each position worth $1000. (No commission costs included and only stocks over $5 are shorted.)

Note that market declines are generally more violent and much more short-lived than rallies, so you must be vigilant in monitoring these positions and be ready to cover should the position move against you. The portfolio can be held for up to eleven days but usually the positions are closed out before then.

All of today’s candidates are culled from the New Yearly Lows list on today’s *Blue Plate Specials*.

Capture

I closed out the other four long portfolios and will post them shortly.

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