It seems like $GMCR is going to have a setup for a bearish move.
From the Ichimoku chart, we can identify the following trading signals:
1. Bearish cross from Tenkan sen and Kijun sen; reflective of the price dropped from $32 to $24
2. Thin kumo support below the current price level suggests that the support is not strong
3. Steep kumo from the past shows the huge change in business trends, a reminder of the changes its business challenges.
And here’s a reminder :
Why Einhorn shorted GMCR?
- Low operating cash flow
- Negative fre cash flow (and getting more negative)
- CAPEX was high and rising
- Valuations sky high
- EPS was slowing and return on invested capital was relatively low
- IncreaseÂ competitionÂ (<< this is a killer, price pressure on product pricing)
- Loss of exclusivity patents (where’s the moat?)
Got this from Invest2Success blog.
1. ProLogis secondary offering 30 million common share
2. Proceeds will be used to repay debt from a bridge facility. Do note the word ‘bridge’. To my knowledge, these are short term loans to allow Prologis to buy time to raise more funds. I maybe wrong since I trade mostly based on the chart.
3. Growth is expected to slow down in areas where its assets are located.
Note: The chart has not exhibit any confirmation. I will be watching for a LONG PUT position.
S&P 500 fell more than 1% yesterday before it manage to recover to a 0.7% loss.
Despite ADP reporting that there’s 179,000 jobs increased in April, it seems that the market has its own reservation of future growth.
On the Ichimoku Daily Chart for $SPX, we can see that yesterday closing has dipped below the Tenkan sen. Next support is near the Kijun sen at around 1332.
At this moment, there is no confirmation of a bearish move. However, the kumo support right below is thin. A drop below it will give confirmation of a bearish move.