the LCAV trade we caught over on Zeev's thread on Ihub , and ELOS as well after those extended sell-offs . One thing have been looking for as well as doubletops and overextended RSI readings is those double bottoms too on overextended sell-offs ....and RSI readings going sub 30 .
LCAV put in one double bottom test of the $40 area exactly matching one back in Nov after dipping into that sub rsi 30 ....and have so often seen shorts absolutely happy to cover into weakness on these tests and low readings for some very nice bounces ..., and LCAV hit that one perfectly bouncing off $40 area just recently .
we did the same for ELOS as well back in feb off the $26's after it had seemingly bottomed too . I've noticed time and time again shorts choosing to cover on doublebottom tests
investorshub.com
* WEN short worked out extremely well and cov'd for +3pts, but now with Barrons pump on WEN this weekend should make for an interesting day for WEN/THI , but WEN was just looking overextended to me and too high into the RSI . Just got lucky with it i guess ;-)
04:39 WEN Wendy's mentioned positively - Barron's (62.93 )
Barron's reports Tim Hortons (THI) sales numbers, while respectable, speak to the fact that they are a more mature co than Chipotle, for example, and are facing modestly slower growth than its long-term trajectory would suggest. Furthermore, Hortons' penetration in its home country is already quite extensive. The bottom line is that Tim Hortons is an enviable co worth owning at a price. But the present price may be a tad rich, given its maturing business and slowing growth. Wendy's (WEN) shares, on the other hand, offer investors the chance to participate in Hortons' growth while getting shares for less than 8x its latest year's cash flow, a steep discount to fast-food peers. And Wendy's, with a couple of activist investors involved and plans for a new efficiency program being floated, could be on the verge of operational improvement. In this case, owning the parent might be the way to get the benefit of the offspring's success. |
