We're way beyond reasonable valuation at this point. What we have here is a bubble that's gotten out of hand. See $TLRY's momentous run up last year, what goes up must come down. But how and when?
$SHOP is a pure momentum stock that people keep buying out of FOMO, it only just over 8 Million shares, which means it will move on you...FAST. THIS IS NOT FOR THE...
is not done moving up? I have taken a short position only to reverse later upon my realization that the recent correction looks like a wave 4. Yesterday, with the 2 downgrades, SHOP dropped 3% and I was able to revise my count to make the recent correction a wave 2.
Today's rally proves that it was a wave 4 afterall with a perfect 38.2% retracement.
This one has had a good run. It looks like it has rolled over. I have my money on a pullback to $253-$255 (20 Day SMA) level at the very least.
Happy hunting. SHOPhttps://www.tradingview.com/x/EWgX7zUc/
Looking at it rebounding a bit then moving towards first retracement around $232.
Diagonal Bear Opened
Trades to open position No. Price Total
buy 21st Jun $255.00 Put 3x100 $15.80 $-4740.00
sell 7th Jun $235.00 Put 3x100 $5.50 $1650.00
Shop is extremely overextended and has begun its round down pattern on the 4hr chart and daily chart. On the weekly chart there has been a bearish harmani established. All signs point to pullback, looking for $244 as first target and $230 as second target. Initial target is 6% profit. Will sell if it continues above $267
SHOP Love this stock but what we have here is an example of irrational exuberance.
Usually if a stock blows through the 127 and 618 ext. it meets resistance at the 224.
Scary stock to short but I might buy some puts or sell premium above 160.
Massive run appears to be topping out. Zacks just rated them as "bear of the day" because "they just don’t make very much money." Overextended after nearly 80% run in the last 4 months. Stock is not HTB
Short around 214
Target 1: 208.87 --- 2.48%
Target 2: 198.61 --- 7.3%
Target 3: 184.15 --- 13.8%
Target 4: 170.22 --- 20.55%