Equinix Throws a Curveball
As much as I like and use technical analysis, there are days when it kicks you in the face out of nowhere. Today's example is Equinix (EQIX). Two days ago, the chart looked terrible, so I took a flier on some September $185-170 put spreads.
Yesterday, the stock continued to weaken, so I took some profits on one-third of the position, but there was absolutely nothing on the chart which signaled a major reversal was in the works. The stock was breaking down on all metrics yet had not reached oversold levels. The P/E was sky high, there is an aggressive short interest in the stock, and insiders have done nothing but sell over the last six months....364 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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