This morning, I am putting out a short sale recommendation on ANSYS Inc. (ANSS-NASDAQ). This stock has been on our watchlist for several months now and we have traded the stock on the long side during the spring with excellent results. However, on a technical basis the stock has created a double top in late June and has fallen ever since. ANSS found support recently at the $42 level and has bounced off recent lows. Since the stock is still in a long-term downward trend, I believe that you can go short  below 43.95 and look for an initial profit objective of $2-$4 before running into initial support. This is a medium risk play.

ANSYS Inc. is in the business of developing software for engineers and designers to be used on the desktop. At the present time, the company’s P/E ratio is quite high at over 38 times earnings. In my opinion, this adds to my technical reasons for a short in the stock.

Our trading portfolio had mixed results last week with the outstanding pick of EDU keeping us quite profitable. Here is an update of the stocks currently held in our WallSt.net trading portfolio:
  • PDE......sold our position on Monday at 40.86 for a 9.9% short-term loss.
  • MUR.....sold our position on Thursday at 87.65 for a 6.6% short-term loss.
  • GRC.....recommended at 41.31, now trading at 41.53.  Keep stop order to sell at 37.50.
  • CEDC...sold our position on Friday at breakeven.
  • SHLD....recommended at 71.58, now trading at 75.30. Raise stop order to sell to 69.01.
  • CLHB....recommended at 72.20, now trading at 75.40. Raise stop order to sell to 68.84.
  • HAL.......covered our short sale on Friday at 46.74 for a 3.5% short-term profit.
  • EDU......recommended at 63.75, now trading at 75.50. Raise stop order to sell to 68.73!
  • NOV......recommended purchase of November 85 calls at 11.50, now trading at 8.70.
  • SU.........recommended a short sale at 57.80, now trading at 55.34. Place stop order to buy at breakeven.