Here’s my take on Vipshop Holdings ($VIPS) – March 16, 2021
VIPS
I want to look at VIP Shop, otherwise known as Vipshop ( NYSE: VIPS ), today. The market is really kind of sluggish today. I was just telling my members that I actually see 3 or 4 short setups that I would literally be taking, they are really, really good short setups. But even if you never short a stock it is important to understand what a short setup is so that you know when the heck you should at least not be in a stock.
There are a lot of stocks that are like that, that are in that category. I am going to show you this one today because this one is not; this is an IBD 50 stock so it’s got good fundamentals. But more than that, you can look at the “fundies” and that’s great, fundamentals are what you want to see in a company. You want to see strong growth revenue in earnings and revenue and also good margins. This is VIP ( NYSE: VIPS ), it has all of those.
All of that doesn’t mean squat if the trend isn’t working, if the chart isn’t working. And today, when most other growth stocks are down this one is up over 3 percent and it’s right along the 8-day moving average. It is hard to enter a stock like this, but this is exactly the kind of stock you want to be in. If you are long VIPS ( NYSE: VIPS ) stay long. I wouldn’t be selling into this strength, it isn’t that strong, it is actually just really steady. You want to see this kind of steady move.
By the way, I am talking about all of these setups and stuff, this isn’t one of them, you don’t want to short into this. The stock is working, if you look at the weekly chart you can get a better frame of reference. This thing could go up to $60.00, in my view, pretty easily. Pretty easily and that would be my WAG price target (that stands for wild ass guess), the price target is about $60.00, so I think you can ride this thing along the 8-day moving average. They don’t report earnings until almost June and so in a weak, sluggish, choppy market a stock like this is hard to find but it is also good to find, so I want you to consider that.
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