Home Depot (HD) - sell short

BATS:HD   Home Depot, Inc. (The)
I am stepping a little bit out onto a limb on this call, if only because HD has had such a strong, persistent advance from last fall. When you consider earnings for Home Depot peaked 7 years ago it is a good reminder that HD is a cyclical stock. Cyclical stocks tend to look great after big rallies and they look terrible on the charts going into bottoms. Well, Home Depot looks great. If I had to stay short this, I would find something to go long against it, like Walmart. The boxes on the chart are the same size. If I can add at some point how HD reacts to news then I will have a much stronger argument to make. Cheers. Technical Tim 11:14AM EST, Wed, March 7, 2012 46.90 last.

Subscribe to my indicator package KEY HIDDEN LEVELS $10/mo or $100/year and join me in the trading room KEY HIDDEN LEVELS here at TradingView.com

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.