RAD - Is there such a thing as a safe SHORT?If there was ever a thing such as a safe short- I think it would be Rite Aid (RAD)
As shown on a monthly chart, RAD triple topped in 2015=2017 and has been in a decline
every since. It has shed 90% of its market cap in the intervening 6-8 years. Now, it is
fundamentally fighting for survival. This is because as a weaker drugstore retailer and
the rise of Walgreens, CVS and others as well as RAD's role in the opioid epidemic
( I have insider knowledge) RAD is now filing for bankruptcy protection against
claims and litigation which will vastly outstrip its liability protections. All confirmations
on the monthly chart ( high validity given the time frame) considered in context, RAD
is near to its death bed. The judge will be ing the rights of shareholders against the rights
of litigants ( which include Medicare, Medicaid and state governments). The shareholders will
loose and loose very badly. I will go short in a stock trade and take a large put option position.
There is no need to buy call options here for backside protection. The writing is on the wall.
Drugstore
RAD Rite Aid Bull Flag consolidation RAD recently popped in a big way and on the 2H chart is now settled in consolidation
about 67% above the prior base. That is to say, it is in a horizontal channel awaiting
further volume and direction from traders. The bias is for a bullish breakout of
continuation and momentum. Potentially RAD could rise the height of the flag pole
but this seems unlikely given the current general market. the dual RS indicator shows
support at the 50 level a good sign the retracement is over, The MACD lines are dancing
around under the histogram. I am putting this on watch. If RAD goes over the top of the
channel I will go long. If it goes under the channel I will go short. I could do both and hedge
but that is complicated and with more risk. The stop loss is outside the opposite side
of the channel. My target is a more up or down about 50% of the completed move represented
by the flagpole. I consider RAD a mem stock with a potential short squeeze in process.
Buckle up and drive safely. DYODD.
Easy $5-6 profitLooks oversold and below 200 wma. Can retest 80 with in a month. Bag those 5-6 dollar profit per share.
Walgreens ~ WBAWalgreens on the weekly chart here is breaking out. I'd go long here anticipating a breakout over 52$ and if it holds it'll begin a nxt run up.
