Not all squeezes work out for the bulls. Here’s how you trade L Brands (LB). (April 16, 2015)

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I want to look at L Brands ( NYSE:LB ). You can see what’s been happening with this stock, it’s been really rewarding the bulls. If you’re buying it during these squeezes and hanging on to it, worked pretty good from 68.00, worked pretty good down here from 60.00, this thing has worked, it’s worked like a champ.

Here’s my suggestion though, watch 95.00. This company doesn’t announce earnings, they don’t report earnings for about a month, it’s like in late May, and today the stock is just starting to fall out of this squeeze. I am not in a habit of shorting stocks like this, wouldn’t do it. If you want to do it go ahead. I’m just telling you this, with the stock starting to move down, it’s starting to pick up steam a little bit, I would look at $90.00 as my line of demarcation. If the stock stays above 90.00 then look what we’re dealing with here, then this gap up to 90.00, is holding, it’s all good.

But if on the other hand the stock starts trading below that level, now suddenly where all these folks who were buying the stock were feeling okay because they’ve got within a couple bucks even of where they bought, worse case scenario, suddenly now they’re all losers. And they start doing that, you see this stock start rolling over more and you’re going to see an acceleration in down side.

But again I’ve got to say this, I’m not predicting this pullback I don’t do that. You see other folks do that, they’ll make these big predictions and if they turn out to be correct, if they luck out, then they want you to remember it, pounding the table about how they made the right call. On the other hand if they turn out to be wrong they just kind of slink into the background and hope you forget all about it until they’re next bold call.

I’m not doing that with L Brands ( NYSE:LB ). I know Cramer loves this company; he would pound the table on it right now I believe. But what I’m telling you technically is that $90.00 is a good support level. If the stock falls down to 90.00 and stays there then watch it, maybe you’re even buying some more. But if it starts to trade below 90.00 suddenly now you’re looking at this, you’re looking at these lows and even here, you connect the dots, it’s all good, suddenly now you’ve got a lower high, now all of the sudden all this becomes resistance and you could see the stock pull back some more.

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