The Brains Trust - 2016, page-1371

Hi Raskolikov. Re shorting Blackmore's BKL, the relevant question is whether you or I can short it. I've noted Captain's chart. Short selling as I understand it is done by a lending agreement facilitated through brokers. Institutions can access this, but my understanding is that brokers as a norm don't offer this service to retailers. Presumably there are some that offer certain stocks to certain preferred clients for short selling, but I don't think that helps you or I with BKL. I've never done it though, so I might not know what I'm talking about!

I spent some time on the weekend researching CFD's. I've always avoided these for fear of blowing up my trading account but I'm starting to be drawn in, mainly because the offering of Mini warrants and ETO's that I use are so narrow. So many stocks like BKL to short, but I'm sure I could do it selectively with CFD's.

A note of caution with BKL though. When stocks hit a major, major peak the first corrective move of the downtrend is usually a sharp 25% of the major up range of the top. BKL went up in one curve without much pullbacks, so I took 25% of the whole all time range and that's $170. Another range measure gives $174. It's went through these today and closed above.

BKL isn't going to be a really technical stock and I've hardly done any work on it, but there's a good chance the initial move down is over and we get a counter-trend back up for a number of weeks. There's not enough info to be highly confident in this, but if it happens it will set up a really clear short entry in a couple of months.

Just watch it from here anyway - we've missed the trade on the initial move.