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LQ a Great Short Candidate

Short
NYSE:LQ   None
11
Relative to the SPX - LQ is lagging badly. LQ hits its peak of 24.94 in May 2015 just after the SPX 2015 high. Subsequently LQ dropped 62%. LQ has bounced back but while the SPX has moved to new all-time highs, LQ is still well below its high. The rally off the 9.42 bottom is a clean "A-B-C" correction. The supposed wave "C" is just above the point where "C = A" The .382 retrace of the entire decline is at 15.35.
Both the daily RSI and MACD have bearish divergences.

LQ has a small short interest so there is little risk of a short squeeze.

LQ has many attributes of a great short. Place stop loss at 15.50
Minimum downside target is 10.00

Mark

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