Rick wanted a chart of TravelZoo. I saw TZOO as a short last week, after it filled the January gap and made a couple of bearish candles. Unfortunately for me, it’s so heavily shorted that I couldn’t borrow any shares. The fact that it’s a crowded short should be in the front of your mind when dealing with this stock as it is subject to squeezes. ( I think it’s having a mini-squeeze today… it just popped about 4 points right after I made my chart.)
Personally, I’m in the bear camp on TZOO right now. I’d rather trade with what the 50-day moving average is telling me. But I can see the case for trying it long here (preferable before the pop it just had) with a stop under $60 and/or the 20-day moving average.
Thanks for your read on the TZOO chart.
Long term I see it as a good short. Float is heavily shorted, and I’m waiting for it expand when CEO sells shares as he indicated he’d do in his S3: http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&filenum=333-121076&owner=include He’s registered to sell 750,000.
I don’t see it as oversold anymore. I’ve got different Stoch settings. Accumulation/Distribution still headed down since Nov 1 2004. It was oversold and prime for a big run Feb 16. http://stockcharts.com/def/servlet/SC.web?c=TZOO,uuh,adaclyyaydcpi!b50!b200!b20vc60iut!Ub21!Uc20!La12,26,9!Lh14,3!Li14,3!Ll10!Ld20!Lf!LgJ37341402,Y&pref=G
Shares are hard to borrow, so if you do get them, be prepared with equity to ride some squeezes like today. Again, I see riding it down for months.
Short term I see resistance at 72.00 – 66.00 from the majority of volume in that Feb oversold run. It’ll need to overcome that. Anything below 50.00 and it confirms the Head + Shoulder topping pattern, and no worries for shorts then.
I would have liked to have seen 60.00 crack as a short, but it didn’t… but volume today isn’t convincing me that this run will hold yet.