Patrick Byrne, the CEO of Overstock, has had a bug up his ass against short sellers for years and years. As I’ve written before, I think the weakness of his company has a lot more to do with its dreadful customer service than the mean old bears. In any case, these guys tried to save themselves earlier this year by hitching themselves to the crypto-craze. I’ll let the chart speak for itself about how well that went.
OSTK (overstock.com) looks like a nice long-term swing short opportunity. This
weekly chart speaks volumes to me: First off, OSTK has made an
impressive, but over-extended rip right up to a primary downtrend line
generating from the stocks’s all-time high back in Dec. 2004. Note how
every single overbought reading on this weekly chart, nearly a 10 year
span, has been followed by a very substantial correction. Typically, it
is the move back down below the 70 (overbought) level that confirms a
sell signal when incorporating the RSI into your analysis. As you can
see, the weekly RSI is currently poised to break below that level on any
addition downside or even sideways trading in the stock.
A Liebherr mining truck at dusk at Peabody’s North Antelope Rochelle Mine in the Powder River Basin of Wyoming (photo via Peabody).
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A Gadsden flag hung out of a Southwest Airlines 737 cockpit. Photo via American Greatness.
The apparent work slowdown at Southwest Airlines (LUV), snarling air travel last weekend, is the latest bit of bad news to hit the economy and markets. Since we shared our bear-proof portfolio back in July (“Building A Bear-Proof Portfolio“), we’ve had the ongoing energy crisis, the China Evergrande (EGRNF) crisis, and supply-chain crisis (“America Is Running Out Of Everything“). All together, this seems like a good test of a portfolio built to manage unforeseen risks. Let’s see how it’s done so far. First, a quick recap of how we built the portfolio.
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Screen capture via Cassava Sciences’ video for their Simulfilam Alzheimer’s disease treatment.
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