As of closing 7/29/11, our position is in profit $8,861, which is +88% since entry on Jan. 13, 2011.
At the opening on 7/28, CROX gapped up +8% due to a fantastic earnings reports announcement on 7/27. This triggered our price @30 alert to send a text to my cellphone to analyze the position to possibly take partial profits. We decided to stay long all #602 shares
Yoda said:
An almost unbelievable day. Only recently I was reading about companies that exceed earning expectations and if their share price increases the day following the announcement, it is a good omen for above price appreciation the next six months. Based on Crocs resilience to the troubled stock market condition, I believe today's strength is even more significant.
Technical analysis: A gap up and run is very strong bullish sign, especially on 2 days that SPY was down. CROX has broken through resistance at 28, and old resistance becomes new support.
1) For 602 shares, tighten stop loss from 24.70 and 26 to 27 to lock in profits +62%. Price of 27 is the new previous swing low is shown in red and at the 200 day moving average shown in yellow.
Price of 27 is below the new support line of 28 to give it some room to wiggle because the market makers might fill all the orders for stop losses at the obvious price of 28 and then take off upwards without them. Steve Nison, the candlestick master, calls this "crack and snap" -- prices goes a crack below support and then snaps back up way above support.
2) My near-term target price is now at the price range of 37 to 40, shown in green, which is the 224% and 261% of the Fibonacci pull of the previous major upswing. I set a new alert at 37 using ThinkorSwim platform. The triggered alert immediately sends a text message to my cellphone to analyze the position to possibly take partial profit.
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