Amongst my 84, count ’em, 84 short positions, one I wanted to mention this morning was Dicks Sporting Goods (DKS). Here’s the long-term chart; as you can see, the company has an interesting habit of making clean, rounded reversals.
Looking closer, you can see the failed right triangle pattern which sent the stock heading quick to its trendline, followed by (just like everything else lately) a huge bounce. The price gap is at 29.94.
Although every trader is obsessed with two things these days – – (1) How many trillions that treasonous bastard Jerome Powell is going to print to save his friends today, and (2) all the numbers related to the virus – – my view is that, at least to a small degree, fundamentals still do matter.
On that point, since yesterday’s close, DKS has announced that it is furloughing its 40,000 employees and is selling half a billion dollars of convertible notes (errr, no thanks). The stock is feeling the heat in the pre-market.