Real or Fake?

This long-term investment play in WWE, which I first mentioned way back in August 2012 as a stealth yield play, is showing signs of a blow-off top today.

On the updated daily chart, below, note the high buy volume surge of late combined with the reversal intraday today.

You never know until you see sound confirmation lower whether the reversal is the real-deal, or simply a fake blip before the next thrust higher.

What we do know is that the stock has covered a ton of ground since August 2012. I have been slowly selling into strength since last year, down to a bare-bones core long-term position. Of course, I wish had held a larger position into the most recent surge. But I am content to trade around strength, given how rare this type of move is.

Given today’s action, if I were holding a larger position I would certainly be reducing. As a short-term trade, you might consider shorting it with a cover-stop above today’s highs.

Earnings are not scheduled until late-February.

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