How I Made Money Shorting in a Bullish Tape

How I Made Money Shorting in a Bullish Tape

By Prof. Jeffrey Bierman, CMT

The S&P 500 ran 90 points today. Every sector lit up green.

Tech, financials, cyclicals. All of them.

I was short KNX the entire time. I got in at $60.50 and covered 25 shares into the morning weakness.

The rest of my position sat there doing nothing while the index screamed higher.

That stock did not go up. It did not participate.

The S&P was having a party and KNX was not invited.

How did I know about KNX?

It's been popping up on the Genesis COG scanner for a couple of weeks now:

You see, most traders spent today trying to short the index into a bullish flag formation. That is a death sentence.

Algorithms rig flag formations…algorithms that my Genesis COGs scanner follows.

They jam price higher and draw in more capital until every short is carried out on a stretcher.

I have hundreds of thousands of dollars in losses from fighting flag formations over 39 years. I stopped doing it.

Instead, I learned to find what the market is leaving behind and trade against that.

Here's how I do that, and you can too.

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