With the IYR breaking again below its 200-day moving average, both main prison REIT stocks still look like shorts to my eye (CXW GEO).
I have written about CXW previously as short idea, dating back to its “diamond top” a few months ago in this post.
Even though it was easy to try to bottom-pick them, they usually do not let you out of prison so easily…Just as Adebisi.
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You had to invoke Adebesi (sp?)
He threatened to stab me with a needle if I did not feature him (no Beecher)
Chess
On a diamond topping formation do you take the top of the diamond (41.40) and subtract it from the confirmation point ($34) to get a price target (26.60)? As always I appreciate your awesome work. Thank you.
Thanks, ctb. Yes, that is a general way to derive a price objective from the pattern.
Thank you, I appreciate your help.
Chess, I own GEO and follow CXW as a result. Just want to question the diamond pattern on CXW you pointed out. I believe there was a special dividend as a result of the REIT conversion that led to this pattern appearing. It does not appear if you use stockcharts to chart the stock. Would you be as negative on the stock if you looked at that weekly chart?
Fair point…Had not considered that special divvi. However, the REITs as a group and the chart itself has gotten way ahead of itself in a one-way trade and a rubber band snapback was to be expected. I would have taken profits up there or backed off it altogether even if no diamond back then.
Thanks for reply they were both monsters last year. I added to geo mid June so nervously holding
good reaction by IYR post-Fed tho–bot dip on Dovish statement