THQI is another stock that’s been on my watchlists recently as a long candidate. (Another) Michael, who’s been long THQI for 5 years is considering going short it to play what he’s seen as a seasonal cycle in the stock:
I have owned this stock for about 5 years, and it has done pretty well. It recently had a large spike on positive earnings, but has since retreated twice on weak volume.
Every year between around May/June, it seems this stock dives cyclically only to go up again in October time frame. It’s heavily tied to retail.
I’m thinking about selling my current holdings and taking a short position, because I think it might dive again this year…
It very well could have another “Sell in May and Go Away” episode this year but I don’t see any reason to sell it in the chart. Personally, I wouldn’t try shorting it until it broke its 50-day moving average. That would have worked well last year.
