In case there are still any people lunatic enough to short into this insane market, I have an idea for you to consider: Discount Shoe Warehouse. It fell hard yesterday, and I told myself if it ever rallied back to its gap, I’d like to short it. Well, that didn’t take long, because the very next day (that would be today: the math checks out) it did rally, so I’m short.
On Tuesday morning, WalMart reportedly a 15% drop in profits year-over-year and warned they would be dropping estimates for forthcoming periods. I’ve placed countless thousands of trades in my life, but I don’t think I’ve ever traded a single share of WalMart. In spite of this, I decided to dust off the WMT chart and take a look at what was going on.