A Typical Retrace

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I wanted to show the chart for hhgregg (yeah, they really spell it out that way) not so much because I shorted it today, but for a more general point: it’s very typical of the kind of hearty bounce I’m seeing these days into whose strength I’m selling. The stock is in a sawtooth downtrend, and it recently bounced nearly 50% from just a few weeks ago. My view is that this kind of countertrend bounce beneath a big topping pattern spells opportunity.

0224-hgg

And, ya know what, that might just wrap up the day for me. I’m hoping Tuesday is a little less, errr, interesting.

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