Little SHOP of Horrors for Shorts
With the rather sharp (albeit brief and aggressively bought) shakeouts from BREXIT last summer and then the election in the U.S. last November still a vivid memory for market players perhaps too many were leaning cautious in front of this weekend's election in France for us to see yet another "sell the rumor, buy the news" event.
Instead, shorts are on the run as the rally today continued to hold and gather steam throughout the session.
Winning charts like software, Shopify (SHOP), which several of our Members have been playing tactfully for a while now, are threatening to simply extend higher yet before their respective earnings reports coming up. As you can see, SHOP marked time sideways in lieu of a price correction after recent overbought conditions, in effect creating a little shop of horrors for shorts.
Several other charts fall into the SHOP category and may follow suit, which we will discuss in my recap after the bell.