Don’t miss this slam play on Fossil (FOSL). (February 18, 2015)
I want to take a quick look at Fossil ( NASDAQ:FOSL ). This stock got absolutely crushed today on some pretty lousy earnings, at one point down almost 20 percent from the prior close. So what are you going to do with this now?
We’ve seen like this, Stratasys ( NASDAQ:SSYS ), it looked very similar and look what happened to the stock. A nice move up, almost 20 percent, well more than that from here, but after the first close, which looks kind of like this, the stock moved up really nicely.
So here’s really how I would be trading this. I wouldn’t buy it right now at 83.69, but I would buy it at 85.02. When the stock starts trading above todays intraday high, which is 84.98 for all intents and purposes, 85.00; if it starts moving above 85.00 well then what is that telling you? That is telling you that all of the supply, all of this supply at $85.00 today, is gone and there’s still enough demand to actually reach higher for the stock.
So I’d say you set your alert, I’ll set mine at 85.05, I only care about this for a week. So now when the stock ticks of at 85.05 tomorrow, if it does, then I’m going to look to buy that stock, and then I’ll ride her until she bucks me off, and if she doesn’t get above 85.05 then I’m not going to ride her at all.
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