Long Term Positions - $HD $LOW $RH $W (Watchlist Candidates)These stocks look extremely overbought to my eyes. Add them to your watchlist for a long term short play. Will need to monitor them for momentum change / Divergence.
Just from the looks of it, W is already showing early signs of divergences (if it doesnt make a new high above 210 for the divergence to stay). These could be the next big short, if you enter with a good, defined risk trade.
- Do Not Pick Up Shorts yet.
- These are components of DJUSHI (Dow Jones United States Home Improvement Retailers Index). Google DJUSHI for more information. The economical impact that is about to unfold will start to weigh in on this industry.
Reason I am selecting them for the next set of short to watch for is because of strength in this sector. Until the strength fades like mentioned above, I will stay long. More to come into the watchlist, as we see some rotation.
