When it comes to fashion, I fully admit that I don't get it. I don't even try. I don't even care. So it shouldn't come as any surprise that I don't "get" the shoes made by Crocs, Inc. (CROX). However, as I noted last month, even though they might not be my first choice for footwear, the stock has clearly been a momentum name. But now we see a test for the stock as concerns once again surface.
The concern has to do with escalators and children. This story has been around before so I am not sure why it is back with such vengeance but check out the headlines on Google Finance...
It seems that this "old" story is getting new life and dominating the headlines. It also seems to be weighing on the stock a bit. The stock gapped lower this morning and it still trading down one percent as the broad market indices all show moderate gains.
In my last post on the CROX I noted the stock was facing short-term chart resistance and pushing into its peak front-month open strike at 60 where 9000 sat. The updated chart below shows the shares have backed away from that level and are now sitting on the peak put strike, at 55.
In that post I said that momentum stocks like this can be volatile but I usually don't find that they just hit resistance and "die" so I would be surprised if they don't slip onto the new high list again. The stock clearly hasn't ticked to a new high yet but I wouldn't yet call the momentum dead.
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