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Yesterday, I bought puts in the clothing manufacturer/retailer Gap (GPS). I based the trade on the resistance line I’ve drawn below, and it was made easier by the surprising fact that this seller-of-jeans-and-t-shirts has a P/E of almost 50!
Ya know, this has an “F” for options liquidity, but I can’t help but love it. I went long puts on AEE yesterday, and I added to the position today. This diamond pattern is irresistable.
As I attempt to understand if the bottom is in for the remainder of 2023, I look for clues. Below are three stocks I found interesting for their tops, and important support/resistance levels shown. Let’s take a look.
UPS is an interesting stock to follow for me, although I rarely trade it. I was short the stock briefly this spring, but was not involved with UPS during this fall’s significant decline. Looking at the chart below you can see that the stock had a massive run higher post-Covid, and then constructed a well formed top over the past three years. The top appears to be breaking down with the weakness UPS has seen over the past couple months. The two dashed lines should make for a good stops for those interested in shorting the stock.
I mentioned yesterday that Tesla’s inability to participate in this insane tech rally is a huge “tell”. Even on a day like this, in which the /NQ is raging higher, Tesla is very weak. I think there’s more of the same coming.
Dish Network (DISH) reporting earnings before the bell on Monday morning. Early trading had the stock trading down nearly 20%. Let’s take a look at the charts and the earnings to see what happened. Both earnings and revenue surprised to the downside. Earnings came in with a surprise loss of 26 cents per share, versus expectations of a profit of 11 cents per share. Revenue came in at $3.7 billion, versus expectations of $3.82 billion.
Looking at charts below we can see the scope of the damage. The first chart shows DISH since mid-2021. After Covid, DISH topped before the broader market, and has steadily been in decline ever since. The stock is down roughly 90% since mid-2021. Today’s large drop sent the stock to new lows.
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