Here’s my take on Deckers (DECK) (May 09, 2014)
Discussed in this article: Deckers Outdoor Corp. ( $DECK )
I want to look at Deckers ( NYSE:DECK ); by the way in the weekend update I’m going in to a lot of stocks that are actually working pretty good, and I’ll give you a little preview of coming attractions. The growth stocks, I don’t know if I can say suck, well yeah I can say suck, it’s my video; the growth stocks have been sucking, you just don’t want to be there, but the value stocks have been doing really well. Selling may go away, fine, sell your stuff that’s not working in May, and go away into stuff that is. We’ll get into some of that in the weekend update.
But here with Deckers ( NYSE:DECK ), this is a pretty good example; the daily chart here, the stocks been in a nice uptrend for a while, but look where its been over basically this year: sideways consolidation, it could keep going for a while, but look at the volatility, the bands are really, really tight. Look at the weekly chart, the weekly chart shows, you can say kind of a little symmetrical triangle, whatever, this kind of thing; but it’s within an uptrend so you’ve got to look at this and say, “Well this is consolidation, it’s a continuation pattern.”
So I’m looking at Deckers ( NYSE:DECK ) here, and I’m not going “ugh”, that was a pun, so if the stock starts trading above say, 81.00, 82.00, you want to be long this stock. I just like the way this stocks trading right now; I really like the pattern. If it starts trading below the 200-day moving average then you can say, “Well Fitzpatrick was wrong.” And then if you ask me if I was wrong I won’t say, “Well I actually didn’t say that, what I was actually saying was that I was bullish of Deckers ( NYSE:DECK ) in certain terms and hoping that you wouldn’t remember what I said.”
No, I’ll tell you I think Deckers ( NYSE:DECK ) is going higher, if it starts trading below the 200-day moving average then I was wrong, get out of this trade. But it sure seems to me I like this is kind of a high percentage trade, so that’s where you want to be. I think this is working; a breakout above here will put it in the really working category.