Two Fugly Charts to Avoid – October 25, 2023
This is Dan Fitzpatrick with FITZ IN FIVE. I want to look at a couple of stocks that absolutely suck.
First of all, Shopify ( NYSE: SHOP ). You are just about to see a 50, 200-day moving average crossover. This is doing that, this is doing that, and pretty soon we are going to be doing that. This thing has just totally fallen out of bed, a higher high, higher high, higher high, lower high, lower high, higher low, higher low, higher low. And then, oh crap here, so you can see what’s happening.
Then just today, on this pullback below 50.00 on heavier than average volume. This is a stock you want to stay away from. If you are buying this dip you must have a hell of a lot more money to burn than me.
I would actually look to short this stock, not here, but if the stock runs up at all, let’s say it comes back and tests 50.00, maybe even 51.00, as long as it doesn’t go back above the 200-day moving average. But if it comes up a little bit, then I would short it on the next weak day. That’s your short on Shopify ( NYSE: SHOP ).
Now, Google ( NASDAQ: GOOGL ), do a Google search for implosion and you will probably get this chart, The stock had been working just fine, it simmered down, and tapered off a little bit here as everybody waited for earnings. Here’s the thing though, the implied move was, I think, $7.00, $7.50. And from where it closed yesterday, that was like 130.00 on the downside.
It was trading there premarket, but it actually opened much lower than that and kept going. So this thing is totally off the map, as far as where it should be trading. So at this point, you’ve got to look at this and say, ditch this thing. The funny thing is, Google ( NASDAQ: GOOGL ) did away, and they should have, they had to, with their motto, “Don’t be evil” a long time ago. Just a few years after the company started doing all kinds of evil stuff.
But now, if you are looking at this chart, I would say, don’t be evil and hold this stock. I would ditch this thing, and wait for it to regroup, Google ( NASDAQ: GOOGL ) is not dead. But if you look here at the weekly chart, guys, this is a bearish wedge. The likes of which I have rarely seen.
Don’t be doing this, don’t be doing that. Get rid of both of these stocks. And do you know what? You can thank me later.
Free Chart