Short day for me tomorrow, flying out to Seattle for a wedding & visiting a couple friends, will be back Monday night.

 

CYH: Came out with some rehash news, then a filing hit that caused some wacky mid morning action, and then a Cantor PT /#s downgrade late this afternoon that stuffed the rebound attempt. Lot going on here. Closed pretty heavy, may still want lower. Not going to get into the details on this one it’s a long story, but I liked the close today, will be eyeing any good pops to try short tomorrow.

 

TEVA: We finally got the bounce day, weak open ramp back & strength all day. Unfortunately I didn’t take the trade. Will be watching for more tomorrow, similar situation if weak open holds look for it to push more. Maybe we get a move towards 20 all said and done.

SNAP: Nailed this one today. Started in early and got some great adds into the secondary push after weak open. My thoughts here today were that a lot of people got shaken out short yesterday, and were likely scared to re-short today after that insane ramp yest, and it played out really well, nice fader closing on lows. Also the thing to keep in mind here, as the days go on and insiders & employees continue to sell, the float continues to grow every day. So as the days progress, this float is getting bigger and bigger, making it harder and harder for them to ramp & hold it, until eventually it’ll turn into a “f$&^ it” scenario for lockup shareholders when the bounces stop & I’m thinking we see accelerated selling in the not too distant future. Still sub 10 target here.

URBN: Reported an “earnings beat” after hours today and stock spiked like crazy. Pretty misleading report though, the reality is they had a horrible quarter with YoY declines all over the place. I listened to the CC and they didn’t even really provide guidance. They also tried to justify future Q3 trends by using just 2 weeks of data into this new quarter lol. Hilarious. So I don’t think URBN is in the middle of a miraculous comeback. However…we’ve seen this before. Look at WTW, same thing – an earnings surprise that caught people off guard and grinded way further than anyone thought. I actually think URBN has a ton of shorts stuck and may continue to pop tomorrow. I am short biased on the name, but not necessarily short biased tomorrow. The open will give an indication of whats going on, but for right now, I’d be cautious. Can grind and move higher for a couple days before it fades.

(AH candles not showing up here, it closed just over 20. )

WTW: Kind of did exactly what I expected today, push & fail near that $49 level, same spot as Monday, so that’s encouraging to support the reversal, failing at same spot on back to back days is indeed topping action. I didn’t short it today, but will be eyeing pops tomorrow, especially an open push. (Remember on WTW, the last thing you want is a weak open…always ramps back) Open push would make me more comfortable for the short.

 

If you’re not an IU member and would like to become one, there’s still a sale going on here, shoot me a PM anytime in chat (DGTrading101 is my IU handle) and I’m happy to discuss trade ideas with you.

See you out there.

– D