Here’s a stock that continues to act well after a pullback. Check out Sketchers (SKX). (September 17, 2015)
I want to talk about Skechers ( NYSE:SKX ). Skechers ( NYSE:SKX ), to just be honest with you, I wasn’t really following it. When this thing made the news here, I’ve got a lot of stuff that I look at and this wasn’t on my radar screen, I’m going, “Oh yeah, Shechers is publicly traded.” So I didn’t catch this. And then the stock started moving higher. I still didn’t catch it simply because stocks that do this, up above the upper Bollinger Band, they’ll go a bit and then when they start doing this, like that, I don’t want to be buying up here; because I just don’t believe that the stock is going to continue doing this.
So why buy? Do you know why you buy there? Because you’re impatient. Because you’re waiting; you didn’t buy it here. Basically you were seeing, as the stock moves up, you’re wrong. You were stupid for not buying it here. So, “By gosh, you’re going to buy it up here!” Okay, well that turns out to be the wrong move. “Oh I’m okay, I’m okay. Oh crap! No I’m not good.” So you’re buying it up here, now the stock starts pulling back. By the way, even if it just continues to drift sideways, you’re not making money. You’re rear end is flapping out in the breeze. You’re not making money, the stock is drifting sideways.
Meanwhile, maybe there’s other opportunities for you. Or maybe you’d just rather have the cash and not be so concerned about having bought at such a horrible level here because you’ve got the “can’t help its”. So the stock’s drifting around and now it comes down, I’ll bet this is the 24th, isn’t it? That was a day that will live in infamy. So that was the best time to buy virtually anything on the market, we’re not talking about this specifically. But what I am saying is, after all this time now this stock is starting to show, (this was just up to yesterday) it’s starting to show that there are buyers coming in. Today, with the Fed’s announcement, the stock still closed up over another percent, almost 2 percent, and the price action was pretty good.
So I’m just saying you look at Skechers ( NYSE:SKX ) and it’s well above the 40-week or 200-day moving average but every trade has to start somewhere. I would say you’re kind of good to go if you want to buy this stock and have a longer time horizon. It would be nice to see it drift back a little bit and give you a better entry. But what I’m saying is, as long as long as the stock stays above 50-day moving average I think this stock works.
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