This flying porker begs to be shorted, but we’ll need to be careful about how we do it, since it has the teeth and disposition of a great white shark. This is true for technical reasons as well, since the current, short-squeeze rally is coming off a low that did not quite reach the secondary pivot at 65.21 (see inset). That’s incipiently bullish, a prospect that has been rendered even clearer by the rally’s having since exceeded two peaks on the daily chart. We’ll want to short the midpoint of the next rally leg, but we can do so more aggressively if we’re long on the way to it. For real-time guidance on this, tune to the chat room if and when BKX pulls back to 69.72. The stock needs to correct at least that far to be presumed ready for a follow-through rally. _______ UPDATE (October 14, 10:51 p.m.): Wednesday’s plunge to 69.09 easily surpassed my pullback benchmark at 69.72, but my gut feeling is that the little porker will go even lower before producing the rally we intend to short. _______ UPDATE (October 15, 10:35 p.m.): Let’s give this bear-squeeze some time to fully develop, since getting short at 74.23 would be much less risky than impeding buyers at p=71.66 or p2=72.95. More immediately, you can try getting long ‘mechanically’ from either x or p if a set-up that meets our simple criteria materializes. Please let me know in the chat room of any fills so that I can provide tracking guidance if needed. _______ UPDATE (October 21): I’m abandoning the effort, since getting short within a tedious sideways distribution requires close intraday monitoring.
