Monday, August 12, 2013


That is the sound that the short sellers in Deckers may be making soon. The price has had a run-up recently and has hit a ceiling. That is probably encouraging for those who think DECK is a short. But for those already short the recent high prices may be coming to represent a "line in the sand". ie, a decision point where they will have to decide whether to throw in the towel and admit they were wrong. And buyers and trend followers will be encouraged.

Anything may happen here. But DECK has the look of a stock that is set to make a move up through the recent highs. And I think that will commence some serious short covering. Time will tell. There is no sure thing in the stock market or in life.

Lines in the sand also provide low risk trading opportunities since they represent a point where traders or investors have to admit they are wrong and are thus prone to trade emotionally.

Don't be an emotional trader!
Get Directv.... LOL

control risk,

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