January 1, 2010

ADD TO $NVDA SHORT SELL POSITION

On December 7, 2009 we lightly scaled in a short with a 5% full position size at $15.18. Since then, the stock has moved up as high as $18.95 based on rumors that $INTC will buy them. Such rumors make absolutely no sense. $INTC is already fighting Department of Justice on anti trust grounds. Considering $INTC’s present intellectual property in graphics chip sets, we see major hurdles to any buyout of $NVDA.

We will scale in another 10% in the range of $18.50 to $19.10. If stock goes higher, we will become more aggressive in accumulating a larger short position. Time to be aggressive is not yet here as our proprietary money flow indicators continue to show strong accumulation.… Please click here or the title below to read more.

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STATUS OF FLU STOCKS

Over the last few days, these stocks have moved up and we have given up some gains. Nothing has changed in our thesis and ZYX Change Method Screens continue to be negative. We are short on $NVAX from $3.43, $BCRX from $8.67 and $APT from $5.25. We will consider adding to our short positions on further up spikes. We will also short sell $SVA, $RVP and $QDEL on up spikes or on technical breakdowns.

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