Here’s the update on our Carvana (CVNA) trade. (May 29, 2019)
CVNA SOLY
I just want to follow up on Carvana ( NYSE: CVNA ). We didn’t really get much of a rebound so now I am looking at this stock as just going lower. I kind of ran through this pattern, a nice high and then a sell-off. There was a rebound to the 50 and then a weak bounce, and then a breakdown through the 50. Then what I was hoping for was a better entry here but we are not really getting it; instead, the stock is going even lower.
At this point I still think it is a safe short. Hopefully, maybe tomorrow you get a little bit of a rebound but I think anytime you are shorting stocks in this kind of “whipsawy” market you want to be careful and have just a small short position. You can review the video from yesterday and my explanation on this. The bottom line is this, you keep a stop here, I would keep it up at 62.00 now if you are shorting and then look to cover when it comes and tests the 50. That is basically all I have got to say about that.
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