Battered pot stocks (the worst performing industry) are setting up daily day-trading setups, on the long and short. I’m on the sidelines having sold CRON longs pre-earnings. Lot of shorts covering.
VFF, another heavily shorted stock, is due for a massive rebound, as there are a ton of shorts that need to be covered soon before the end of the year. If 6 holds for the week, I’m expecting a jump on Friday.
I’m sitting out of URBN which reports today. Its rallied off its August low of 20.51, but a Q4 miss can send this stock down hard. I’m putting the brick-mortar retailers on my radar for a long-term short, the basket will include: TJ Max (TJX), Dollar Tree (DLTR), and Ros (ROST), while holding longs in JWN (Nordstrom). Kohl’s is the first domino piece to fall on a Q3 earnings miss today. Will be an interesting week for retail.