Here’s a chart of Tempur-Pedic for Andy who wrote:
Can you look at TPX? Dead cat bounce? But the volume was above average today(+37%). Negative Barron’s article had reverse effect today. Strong earnings due Thurs., huge short position(10 days to cover). What do you think??
I don’t know if this is a dead-cat bounce but my guess is that the Barron’s article created a ‘buy the news’ reaction among people who were already short for the reasons outlined in that article. The reaction to those ‘strong earnings’ will likely make or break this chart. (As an aside, does Andy know something that the market doesn’t? The chart sure doesn’t look like ‘strong’ earnings are expected to me.) The break of the recent trendline should embolden the bulls a bit but I’m neutral on TPX until it can close above the 50-day moving average.
