PETM rolling over - sell short

What I see developing here in PETM is distribution noted by the red flags. This chart looks similar to the way MCD topped out earlier this year. Possibly this also looks like CMG that I also caught on the short side.

In PETM, the sellers seem to come out of the woodwork near the $70 level. Over time the buyers are taking on stock that has been owned for a long time and doubtful that those sellers will return anywhere near current prices.

I will sell short soon and target a move back under $64 initially (cover shorts) and then will re-short on a lift back to the $67 area and then I will target a move under the $60 level.

I see very heavy resistance at $70.50 to define my loss level.

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Started to head in the right direction now Tim, do you think this is one to stick with now or is this a good time to get out and minimise losses?
timwest kieranellery
Hello kieranellery, I think that there will be another opportunity to short PETM and it is best to cut the position and take the loss. We have some great trades setting up and I think it is best to be ready for new ideas. My comment from 12 days ago could have been more clear. The trade wasn't working and I could have done a better job saying to get out. Here's hoping you have had a good 2012. I look forward to finding some great trades.
Hi Tim and thanks for getting back to my question. I'll take the loss on this one and learn from the experience. Thoroughly enjoy reading and learning from your analysis on the site, really excellent stuff. I'll look forward to future trades with much anticipation. Best of luck for your future trades buddy.
All that I can see happening here is that the sellers at 70.50 are containing the advance. This trade is not exactly working according to plan. The sellers are not getting more aggressive by lowering their price over time, so that is a somewhat constructive event. If you recall how MCD topped out, it did take a few extra rallies by the new buyers into the old sellers to really bring out the sellers. So, I will likely take a few more tries at this chart setup in order to get it right. I'm going to cut off this trade pretty soon if it doesn't start to work.
Great explanation
Glad to see this Tim. I actually took PETM short yesterday at the open @ 69.15. Gives me some extra conviction in the trade. Have a great Thanksgiving.