SSS - Macro-View in Visa, Inc. (V)
Below is a weekly chart of Visa, Inc. (V) which gives you an idea of the potential macro-set-up we are looking at here. You can see that the current action may be the peak of a possible second right shoulder within an overal head and shoulders topping formation following the huge rally V had off the market lows of March 2009. Keep in mind this is just the theoretical basis for the short-sale trade in V here, and one will not know the precise downside target areas until the extent of the market's correction is clear here, assuming it corrects at all! If it does, we would try and synchronize a short in V with the general market, monitoring a real-time chart of the indexes for possible undercut & rally areas. We will have more on any price targets IF, and we emphasize IF this works on the short side. So far, V has held in the green most of the day today at 10:52 Pacific Time, but we would watch for weakness into the close if the general market also softens.
Keep in mind also that we fully advocate short-selling in the event of a short-term to intermediate-term market correction, which tends to be "tactical" in nature, seeking to hit a closer downside price target, but if the market's trend decides to continue further, these can then become "strategic" in that we may attempt to campaign a longer-term downside move. For now, this is the set-up, and we use yesterday's high as our max stop on any short position in V, got it?
And for you looky loo's out there, yes, we have a position. For us, it is a "probe," but to you it might be a massive position - who knows? ;-)
This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2014 Virtue of Selfish Investing, LLC. All rights reserved.