Monday, July 8, 2013

KKD Krispy Kreme Doughnuts Weekly and Daily Charts Overbot Rising Wedges Negative Divergence


Perhaps Keystone should listen to himself about shorting momo stocks. KKD is a darling of momo traders recently and they continue to pump it higher. Keystone started shorting donuts at the tail end of last week and has an ongoing KKD short trade. The purple dots show the moving average ribbon at its maximum levels for both the daily and weekly charts with price above the 20 MA above the 50 above the 200. There is no where else to go on the top side. The overbot conditions, rising wedges and negative divergence all indicate that a smack down is pending. There is some near-term momo so price can move sideways for a few days, or even a week or three, before rolling over, but the easy money has already been made on this one.

The daily chart shows a rising wedge completing two weeks ago which would have been and ideal time for a continued lower move, but as the central bankers keep pumping equity markets, seeing their main function as keeping the stock market elevated, money ran into KKD to pump it higher to the current potential top.  Projection is that the donuts are stale and sitting on the counter too long. KKD should move sideways to sideways lower moving forward. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

8 comments:

  1. KS,
    Could you also post a SOX chart? Thanks!

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    Replies
    1. Yep, that is on the list, perhaps SOX and SSG. Chips are hit today on the Intel downgrade. MU is down. Ditto QCOM. Keybot the Quant is tracking SOX 462.50 currently, price is 467.40, so the bears can weaken the markets if they push SOX down about five more points, otherwise, they got nothing.

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  2. Hi KS,

    What do you think about AA today?
    Being the kick-start of the q2 earnings season I've heard that about 70-80 % of the companies offered negative evaluation for q2. Guess that's not too encouraging. Or is it just a bullish strategy to "paint" the picture of a great q2 (low expectances easily beaten)?

    V.

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    Replies
    1. AA is on the chart list, would be nice to post it before the closing bell today.

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    2. Thank you, KS.

      V.

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  3. Hi Arnie or V,
    what's up with your wave count?
    Are we riding W5 currently?
    Thanks!

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    Replies
    1. If 1660 is taken it's int wave 5 , if it's not taken or if it's merely touched after a very messy and jammed uptrend it's wave 'c' of B of int 4.

      Some say that now it's wave 3 of int 5 ... but excuse me... if this jammed thing lacking breadth force is wave 3, you can call me 'Santa Claus'...I know how a wave 3 of int 5 looks like ... this one doesn't looks like that.

      I want to see 1660, 1670, 1680-1690, 1700, 1710 , 1720 taken one level after another ...bang, bang, bang! Where is the force of the uptrend? Don't see any force.

      Anyway... getting long at the end of a major wave during the final int wave 5..is somewhat crazy :) .... usually waves 5 are used to load some shorts and unload the last longs :) , not to get long now :)....

      V.

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  4. Could this be an ABC wave?

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