I was asked on Twitter where the shares of this luxury-home builder are headed. My answer is to 30.60, at least — implying it should be shorted first, then bottom-fished with a tight stop ahead of the expected bounce at the target. This information seemed worth sharing because the target and the pattern that produced it look so high-quality to me. So much for the housing sector. ______ UPDATE (August 17): Friday’s bull-trap squeeze to 34.36 on the opening bar was not quite close enough to the 34.50 pivot I’d suggested shorting for a potential ride down to 30.60. The relapse to 33.63 would have given us great odds, but since it’s past, so is our best opportunity. However, because the downside target remains valid, I’ll make this one catch-as-catch-can. (Assuming no one got short on Friday.) If you let me know of a fill in the chat room, I’ll establish a tracking position for your further guidance. ________ UPDATE (August 18 10:03 a.m.): The stock is now in the grip of a wicked short-squeeze that targets 34.74. Short there, by all means, but don’t risk more than 8 cents on the initial stop-loss. (30 min, A=33.25 on 8/13).
