UA. The long awaited short that caused quite a bit of commotion on facebook this afternoon among some people. Here is the reasoning behind my short. 1) 9 new highs were created during this move upward in a matter of 13 trading sessions. 2) the shooting star pattern today. 3) a retracement back to the 23% level almost exactly touching the line with today's highs. 4) the weak volume considering the strong move upward. 5) a move back to its 200 day moving average in green.
Granted there is talk about this company being bought out by Nike, but I would have expected the volume to be a little more convincing if everyone is 100% sure of a takeover. Not to mention that any investment bank advising this deal would like the stock to fall more before making an offer. It's run up nearly 60% on this move alone and has now reached irrational levels. So, am I discounting the fact that it could be taken over? No. But what the charts are telling me is that this stock has more likely odds of falling that raising. I'm keeping my stops tight as always to protect me from losses.
BBBY is another one that member's got an email about during the morning and should have made at least 2% already today since. I'm looking for a retracement around $21.50 or 50% of the move up recently. Also, I highlighted the volume to show how it has gotten considerably weaker during the move up which tells us that there is little to no conviction behind the move.
BGC is another nice short I have been talking about for a week now that posted a nice harmani cross/shooting star doji pattern today. Again, we can see that this touched the retracement level almost perfectly today and a move down below $15 should be no problem.
CBRL may move higher up to the draw trendline as I have said before. The volume has been week and you may want to place a short trade here with stops above the recent highs.
FCN made a considerable move downward today nearly 6%. I mentioned this stock last week as a possible short and its moving as I expected.
That's it for tonight folks. Just a note on individual stock requests. I am constantly flooded with emails from people asking me to analyze this stock and that stock. So here's the deal....if I don't post about it or send out an update (for member's only of course) than I'm not interested in it. I hope everyone can see where I'm coming from considering I go through hundreds of charts each day. Happy Trading!
