Crocs: An Endangered Stock
There's a reason they call them fads.
Hello from New York where my son, Superfly and I are debating what kind of matching tattoos to get in honor of his 3rd birthday. He's wanting to celebrate his love of Cindy Loo Who across his back. I keep trying to explain that his crush on her is going to fade but kick-ass dragons are forever.
Here's what we're looking at in between shots...
- Crocs (CROX), or what Johnny calls "dinosaur shoes" (logo confusion) are obviously not selling the way they once did, despite my wearing a strap-on version under the Fast Money desk nightly. There were obviously plenty of warnings that this story was breaking ("the chart" and "the company actually warning repeatedly", to name two). The important thing is the lesson of what happens when cult stocks break. If you're still holding Crocs, consider the loss tuition in the trading school of hard knocks.
- As my ill-fated crude ETF (USO) long recently proved, you don't get a free-ride once you graduate from trading school. The lessons and losses just cost much less. Where's the next $20 on crude? I dunno and don't know if it kills or saves the economy, either way. There are simply easier trades now that the most-obvious trend has broken.
- On the topic of "Easy" trades gone by; Wynn Resorts (WYNN) told us what we already knew ("Vegas, baby") and the longs and shorts are fighting to a draw after the Great Squeeze of '08. Walk for now but these names are still better shorts than longs in the big picture (by which I mean, for another 18 years when I don't need fake IDs to take my boy for a Joe Kennedy Style Vegas Weekend with the Kids).
- Good thoughts today from Fleck and Jeff Cooper on Amazon (AMZN) and Potash (POT), respectively. Moves like those two put in on a regular basis are the Siren's Song of Trading. They just seem so lovely and "splashy"; there's got to be some way to make money off them. If you can find a trade better than "Wild Guessing" it's all you, my friend. In a tape this tough I'm staying invested in "boring" and trading extremes. The noise in the middle will kill ya.
- With that I'm off to the tattoo parlor! Have a happy, safe, weekend, Minyans. Let's hit 'em hard on Monday!
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