If (when) the market finally cracks, I’m going to need some candidates for short sales. Many traders like beating on the much maligned plastic shoe maker, though come to think of it, plastic hoops and flying disks have sold well for decades. At any rate, lets take a look:
CROX has shown some surprising pop (and not too bad technicals, except for the double top) for a stock that gets bashed so much, recovering even after losing its CEO at the end of February. Bears will focus on the double top, while bulls will wonder if a cup-with-handle is in the works. The bears will be freaked if it goes much over 8, so you know it soon will be there, if only for a minute or two. I will play this one short only if it closes solidly below the 50 SMA (in other words, under 7) and have a tight stop ready to buy it back. A more conservative way to go would be to wait and see if bears can bust through 2010 support at $6.75.
[...] CROX, where last week I was looking at a possible cup and handle forming, well now it does indeed look like that has come to pass. But I have to wonder, while looking at [...]