The V-shaped rally off of the Thanksgiving week sell-off continues higher this morning, with the bulls wasting no time coming out of the gate sprinting. After the rally we see last week, a Monday morning gap higher has me looking to lock in some hard-fought gains for the sake of discipline. Accordingly, I locked in some more gains in FIRE at $34.20, which I had discussed many times in this tab and had bought at $31.70 inside 12631 last week. I am now entirely out of that position again, after successfully trading it over the past few months. However, the long-term technical breakout and short squeeze potential remains intact and has me intrigued to revisit the stock once again.
The cloud-computing names are surging, in large part off of the news that SAP bought out SFSF over the weekend. These types of squeezes add to the frustration of short-sellers, given the sudden change in momentum we saw last week. Hence, the V-shaped bounce is designed to frustrate just about everyone. However, I am still focused on exercising some patience until better setups emerge, which would likely require a few days of sideways action.
Specifically, I would like to see more charts set up in the way PIR is, basing tightly above all of its daily moving averages. You can see below that a move through $13.90 would have me very interested in going long. Note that earnings are on 12/15.
__________________________
If you enjoy the content at iBankCoin, please follow us on Twitter