THU 3/5: GIL – CALLING A 3RD SELL SIGNAL @ $65.01 -0.8%

2:26 PM – This stock never recovered from its earnings selloff. As we often say, when there is an earnings selloff, the stock must recover quickly to maintain leadership. That has not been the case with GIL. It’s a shame that we missed out on some once solid gains. The continued failure to regain momentum confirms underlying weakness. Calling a 3RD and FINAL SELL SIGNAL here.

BUY SIGNALS:
1/21 (1/3) @ $65.54

SELL SIGNALS:
1/28 (1/3) @ $64.59 -1.4%
3/3 (1/3) @ $65.81 +0.4%
3/5 (1/3) @ $65.01 -0.8%

OVERALL P/L: -0.6%

ULTRA Trader’s Tip: Earnings Reactions Set the Tone

  • After an earnings selloff, strong stocks should recover quickly.

  • Failure to rebound signals underlying distribution.

  • Exiting laggards early keeps capital available for stronger opportunities.

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

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.

WED 1/28: GIL – 1ST SELL SIGNAL @ $64.59 -1.4%

1:40 PM – Shares broke below the 10 DMA mid-day, triggering an initial SELL SIGNAL as short-term momentum failed.

SELL SIGNALS:
1/28 (1/3) @ $64.59 –1.4%

ULTRA Trader’s Tip: Early Signals Matter

  • The 10 DMA is the earliest line of defense.

  • Breaks below it often precede deeper weakness if ignored.

  • Acting on the first signal keeps losses small and decisions unemotional.

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