TUE 3/3: GIL – CALLING A 2ND SELL SIGNAL @ $65.81 +0.4%

9:46 AM – The stock is clearly breaking below its 10 DMA and failing to make the quick recovery from the earnings selloff that we normally want to see. In addition, the 10 DMA has now completely rolled over. Those are bearish technical developments warrant a 2nd SELL SIGNAL call this morning.

SELL SIGNALS:
1/28 (1/3) @ $64.59 -1.4%
3/3 (1/3) @ $65.81 +0.4%

OVERALL P/L: -0.5%

ULTRA Trader’s Tip: When the 10 DMA Rolls Over

  • A stock that fails to reclaim the 10 DMA after an earnings reaction is losing momentum.

  • When the 10 DMA rolls over, short-term leadership is fading.

  • Scaling out early prevents small problems from becoming larger ones.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.