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Post by Admin on May 3, 2015 13:56:56 GMT -5
(Click To Enlarge) A) SKX had a big volume post earnings move. I started seeing signs of price exhaustion and distribution on the 27th due to the compressed/narrowing price range and the failure to advance. B) I entered the trade April 28th on the break of the low of the previous day ( April 27th). The stock closed strong that day and showed that there were still buyers present but many of them were getting filled on the bids and thus the range was still narrow. So i decided to stick with it. C) On the evening of April 30th a small investment bank called B.Riley issued an upgrade for SKX and raised the PT to 92.00/share. The reaction was light but still managed to move the stock nearly 2 points the next day and that stopped me out for a loss. SKX could either consolidate here and form another base from which it will push higher and print 95.00-97.00 highs OR the distribution will continue and then it will eventually lose the supportive price action and roll over. I am still keeping an eye on it and stand ready to go either way with June calls or June puts.
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hkunz
New Member
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Post by hkunz on May 7, 2015 14:09:11 GMT -5
SKX is really puzzling me. Why would anyone buy it at such highs RSI 80, wouldn't they be better off taking profits. can you help us understand that? Would you go long?
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Post by Admin on May 7, 2015 16:50:15 GMT -5
Hi Hkunz, there is a lot of upside momentum in this stock at the moment and most of it is driven by short covering. It has a relatively low float and a 15% short interest so it doesn't take much to move it. I wouldn't go long here but it is still too early to get back short. I am going to so some more work on it and post and update.
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hkunz
New Member
Posts: 3
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Post by hkunz on May 7, 2015 17:08:10 GMT -5
thank you for your response and insights! can't believe that even PT raised by Citigroup to $106.00 and buy rating
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Post by Admin on May 11, 2015 5:57:21 GMT -5
Yes, I saw that. These upgrardes will keep the momentum is still intact so I expect it to trade higher near term but there will still be an opportunity on the short side once the shorts are squeezed out and longs who got in around 90 start to take profits. There will also be another opportunity to go long into the next earnings call as well. SKX should be a nice on trade (both long on short) for the next quarter or two. I still have it in my system with price alerts.
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