Stalking Highfliers for Short Sales
Green Mountain Coffee Roasters (GMCR) got obliterated in Monday's session, dropping more than 10% after hedge fund manager David Einhorn disclosed his bearish position on the caffeine king. The steep decline illustrated that not all growth plays are bulletproof, despite the October recovery. In fact, other horror stories may be in their latter stages of development.Green Mountain Coffee Roasters (GMCR) -- Daily Source: eSignal View Chart »
The high-beta favorite was already in trouble prior to the big knockout punch. The daily chart shows the rally topped out in September, yielding a deep pullback and early-October bounce at $82.40. The upside ended just one week later, although the major indices ticked higher for another three sessions. This bearish divergence came into play during Monday's breakdown....512 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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