Anything that runs up fast and strong has to come back down and that is where we get Parabolic Shorts. A parabolic move is when a stock basically comes from nothing and just runs straight up without trying. We saw this kind of move in GY. The best way to know when something is parabolic is to throw bollinger bands on it and see if it is completely outside of them. When something is far outside its bollinger bands it is going to want to pullback. Another good key is a weaker volume as the run up goes on. This is when we look to short these babies! Parabolic shorts make good day trades but even better swing trades because the pullback will usually last 2-3 days.
{denvideo http://www.youtube.com/watch?v=h-yaEup8Vr4}
