• Portfolio Management for May 30, 2017

    The portfolio is still in cash. The stock selection process still points to more short than long ideas.



    Let's review some of these ideas:

    ECHO looks interesting. It has been in a long downtrend and now bouncing on a weak EV pattern. The only, but major issue is the low volume. This means that shorts covering activities can easily push the stock past stops.





    KORS also looks interesting and offers more volume. Kors has been in a trading range for many weeks. The calculator shows that it is best to short at the top of the range, but not above it, because this would imply a closing of the gap.





    GBX also looks interesting, but it has been subject to gap ups in the last two earnings announcements. The next announcement is only one month away and the stock has already pulled back down to be base of its most recent gap. Hence, the profit is probably limited to 10%.