I have been watching ELF for awhile and I am seeing a very tight 3 week consolidation. This market has me pretty worried overall, should I wait and see if it can hold that range for 5 - 7 weeks and if it runs before that, I just wait and see if it sets up again?
KMX just rebroke its 50ma to the downside 65.59 currently with what I think is support at $54.85. If this opens on strong sell volume does this seem like a good short?
ELF This is one of the strongest stocks in the markets evidenced by its strong RS line and 99 RS rating. I want to buy this stock too, and there is just not a proper entry point right now. It has broken out a few time (June 30 and November 3) and has been riding its moving averages to higher prices. If you do not have the patience to wait for a base (like me) then the best plan of attack is to buy a bounce off the 21ema. That is my plan for this stock. The stock is currently 4.1% above its 21ema and if I buy now then I am likely to get shaken out on a routine pullback. I hope this makes sense. Remember to wait for the bounce. KMX Yes! This does look like a good short play, and a good find for you! The stock is showing relative weakness evidenced by the low RS rating and downtrending RS line. It has "rallied" up to its moving averages in light volume forming a "bear wedge." I am not sure that I would wait for the $54.85 support to cover though.
This stock is opposite of ELF as you must wait for the rejection of the moving average before taking any action. You can see back on November 11 it rose above its 50sma and I bet that shook some bears out. It quickly traded back below its 50sma and that is a place for the rejection.
Well I got in KMX when I saw volume picking up but covered at a very small gain when I saw vol seemed to be quickly drying up. Picked up shorts on ABNB at 88.33 and am up a little on that so put in a buy to cover at BE. Reading O'Neil How to Make Money Selling Short but shorting stocks is very new to me so if you have any feedback on where I screwed up at here in my thinking, it would be very appreciated.