Back on May 31st, I pointed out the ascending trendline on the small caps (via IWM) and mentioned, “As you can see, the last time it tagged this lower channel trendline, it rallied mightily.” Well, regrettably, that is precisely what has happened. I’ve put an arrow on the day of the post:
So where to from here? Ya got me; lifetime highs aren’t my cup of tea.
This is just a follow-up on Chicago Bridge & Iron, a chart frequently-mentioned here on Slope as a good short candidate. Well, so far, so good on this one, and I’m simply tightening up my stops along the way down. I think it’s got plenty more to go. (Note: this chart is even lower than when I screen-grabbed it this morning – – it’s doing just great).
Early this year, I pointed out Sally Beauty Holdings as a nice short setup. Here’s the graph at that time:
I have endlessly touted the virtues of shorting Pier One, the seller of scented candles, bongo drums, and other knick-knacks from around the world that, let’s face it, no household really needs. This short is really starting to kick into gear.
ORLY has dropped about thirty dollars since I did this post last week. I suspect it has much further to go.