Going Short Ulta

Ulta Salon Cosmetics & Fragrance (ULTA) has the look of a long side trade that has died. I'm out. The stock was unable to take out $103 on the close, and is now pushing lower into the post-earnings gap. In fact, this one seems set to head back to a gap fill, so I am buying some January $90 puts for $1.30.

Ulta Salon Cosmetics & Fragrance (ULTA) -- Daily Source: StockCharts.com View Chart » View in New Window »

The weekly chart doesn't look any better this than the daily; here, a dip to $85 actually looks possible, as does a bearish divergence in the relative strength index....264 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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