.png){kind=small}
In the latest ITPM Flash Update titled Get Shorty, Edward Shek, a professional trader and mentor at the Institute of Trading and Portfolio Management (ITPM), delivers a clear message to traders: stick to the process, prepare for all outcomes, and don’t get caught up in the noise.
Shek explains that volatility is well-positioned heading into 2025, setting the stage for what he describes as an excellent trading environment. With that said, trading success in 2025 won’t come from guesswork—it’ll come from disciplined preparation and the ability to react unemotionally to changing market dynamics.
Let’s take a closer look at the key takeaways from Shek’s video, including why he highlights CDW and Palantir as prime candidates for short trades, and the actionable lessons traders can apply to their own portfolios.
Stick to the ITPM Process: No FOMO, No Guesswork
Right off the bat, Shek reinforces a key principle: the process is always the process. At ITPM, trading is built on disciplined, professional-level portfolio management. This means avoiding emotional decisions, resisting the temptation to chase trades, and focusing on risk-adjusted returns.
Shek emphasizes the importance of sticking to a 1–3 month time horizon and staying ready to react when the data or consensus narrative changes. Pretending to predict the future, he explains, isn’t necessary. Instead, traders should prepare for all possible outcomes.
Key Points from the Flash Update:
Be Ready for Both Outcomes:
Instead of guessing where rates will land or how geopolitical events might unfold, Shek suggests preparing trades for both scenarios—whether rates rise or fall, or whether the narrative shifts toward optimism or pessimism.
Stay Diversified and Balanced:
Diversification is crucial to mitigating directional risk. Holding a mix of long and short positions ensures traders are prepared for choppy, unpredictable markets.
Don’t Chase or Panic:
Shek warns against chasing trades or succumbing to fear of missing out (FOMO). Emotional trading only leads to mistakes.
CDW Corporation: A Weak Link in Tech
One of the central ideas Shek discusses in Get Shorty is CDW Corporation. CDW, a provider of IT hardware, software, and services, has a business model built on acting as an intermediary between its client base and technology vendors. While this model has its merits, Shek highlights several weaknesses that make the stock a compelling short opportunity.
Why Short CDW?
Declining Fundamentals: CDW has been struggling financially, with year-over-year declines in both revenue and earnings. The company’s last earnings report triggered a 20% drop in the stock price, and Shek believes there’s still significant downside ahead.
Lack of Pricing Power: Much of CDW’s business revolves around low-margin hardware and generic IT services. Shek notes that CDW’s lack of pricing power makes it difficult for the company to offset cost pressures or drive meaningful growth.
Overreliance on Government Spending: A staggering 40% of CDW’s revenue comes from the public sector, which is now facing budget constraints. Shek explains that as government budgets tighten, CDW’s largest revenue stream is at risk, creating significant headwinds for the company.
According to Shek, CDW is exiting a period of strong tailwinds (like COVID-related deficit spending) and entering a phase dominated by headwinds. This combination of declining fundamentals, weak pricing power, and government dependency puts the stock in a precarious position.
Palantir: Overvalued and Crowded
The second stock Shek discusses in Get Shorty is Palantir, a tech darling known for its AI-driven data analytics platform. While Shek acknowledges Palantir’s innovative business model and long-term potential, he points out several reasons why the stock is vulnerable in the current market environment.
Why Short Palantir?
Extreme Valuations: Palantir trades at sky-high valuations, with the market pricing in flawless growth for years to come. Shek explains that such extreme valuations leave the stock highly susceptible to any signs of slowing growth or negative sentiment.
Sensitivity to Interest Rates: Shek notes that Palantir, like many high-valuation tech stocks, is particularly sensitive to rising bond yields. Even small shifts in interest rates could trigger a significant sell-off.
A Crowded Trade: Palantir has become a “meme stock,” attracting a large base of bullish retail investors. While this can drive explosive rallies, it also creates the potential for steep corrections when sentiment shifts.
Shek emphasizes that while Palantir’s long-term story remains intact, its short-term risks—combined with its extreme valuations—make it a compelling short opportunity in today’s market.
Actionable Lessons from Shek’s Flash Update
Edward Shek’s Get Shorty update offers valuable lessons for traders of all experience levels. Here’s how you can apply his insights to your own trading:
Diversify Your Portfolio: Don’t put all your eggs in one basket. A balanced portfolio with both long and short positions helps mitigate risk and ensures you’re prepared for multiple scenarios.
Focus on Fundamentals: Shek’s analysis of CDW and Palantir demonstrates the importance of digging into a company’s financials, business model, and market dynamics before making a trade.
React to Data, Not Emotion: Markets are expected to remain volatile in 2025, with heightened sensitivity to changes in interest rates and geopolitical developments. Be ready to adapt your trades as new information emerges, but don’t let emotions drive your decisions.
Stick to the Process: As Shek repeatedly emphasizes, professional trading is about preparation and discipline—not guessing or chasing trades. By staying focused on risk management and asymmetric returns, you’ll position yourself for long-term success.
FAQs About Edward Shek’s Flash Update
Q: Why does Shek highlight CDW and Palantir as short opportunities? A: Shek identifies clear weaknesses in both stocks: CDW faces declining fundamentals and government dependency, while Palantir’s extreme valuations and interest rate sensitivity make it vulnerable.
Q: What’s the key to trading in 2025? A: According to Shek, the key is diversification, disciplined risk management, and preparing for all outcomes rather than relying on predictions.
Q: How does Shek approach trading?
A: Shek’s approach focuses on professional portfolio management, emphasizing risk-adjusted returns, asymmetric opportunities, and reacting unemotionally to data.
Financial Disclaimer
This blog post is a review and interpretation of Edward Shek’s Get Shorty Flash Update by the Institute of Trading and Portfolio Management (ITPM). The material discussed here is for informational purposes only and does not constitute financial advice. Readers should not interpret this content as a recommendation to enter any positions or execute trades. Always consult with a licensed financial advisor before making any investment decisions.