Hi Ryan,
ROST finally woke up after the MMs robbed everyone
blind. WOW! Take a look at the chart profile set to the
daily prices. For those of you that get the free newsletter
at coveredcalls.com will recognize the chart
pattern. If you recall, the WINs technical indicator summary
chart under pending gap spells out that the when the upper
and lower BBs are very narrow, it is like a compressed coil
spring ready to release. Gappers can go up or down. But, if
you factor in other indicators like the super, super, low
RSI and lower OBV, it was only a matter of time before this
stock woke up. Clearly, there was more upside potential
than downside slide. I had thoughts of the new ROST
management jumping in and doing a buy back. It has been
done before to counter bad street reactions.
siliconinvestor.com
ROST Potential? This stock remains an undervalued
stock and a good CC workhorse. Although, the open interest
at this point has been dead. In the past, I have noticed
when companies do a buy back they pump money into the stock
which forces the price up caused by a man made short squeeze
which does not last long. ROST has a fairly slow float
turnover (TRO) and does not light candles like the vipers.
Yes, stocks jumps up fast when buy backs are announced and
it draws attention. But, there is some massive ROST
overhead price resistance at the $18-$20 level which must be
satisfied. Because, the ROST open interest is low, I would
be more inclined to short against the box when ROST hits
that brick overhead. Meaning, rather than CCing (if there
are any buyers) you can short a heck of great deal more
ROST stock for some quick downside profits. Provided you are
not margined on the long ROST stock, you could pick up a
nice clip of stock to short since the margin requirements
are fairly low.
Looks like ROST is back in play! |
