One of the trading lists that I keep is one that I call my “to fade” list – stocks that I want to “fade” a move on. Although this is predominantly for short positions, there are times where I will fade a waterfall in price looking for a bounce (or more).
One such stock that has been on this list is KORS (Michael Kors Holdings ltd). In late January I posted this chart with commentary that I was going to trade what I saw at the time (was on a B/O watch over 30). Now let’s fast forward to today to see what has transpired since:
The positive reaction to earnings produced a large gap up move and the stock finished up over 27% today on big volume. For those that held into earnings, congrats.