This evening’s installment brings us a high-flyer who is begging to be relegated to thrift store status. While the bulls were able to push this just pennies above the 200 day average, do notÂ give their late-day bravado any credit.
Â “C’mon, smack me around like the bitch I am. Strangle me with this rope; shove the bandanna in my mouth, and take me down 20 points.” Yes, even their spokesman is asking for a beating.
GES is at the edge of a precipice. As it has strong earnings and international exposure, it pays to be cautious. However, should this teeter much longer below its major moving averages, it will be game over. Even a strong earnings report and raised guidance could not push it above the 50 day average, so anywhere above that point makes a good place for a stop.
As you ponder this trade, consider that this is one of those stocks that has doubled many times over, and split, without a major correction. If it goes over the precipice, there will be years’ worth of holders who will be considering liquidation.
FD: I slapped their spokesman around today when it broke $46.00.