Why I'm Shorting Harley Davidson (HDI)

| About: Harley-Davidson, Inc. (HOG)

The reason for this short (200 sh @ $54.50) was largely technical as HDI seemed to be making a double peak at the $55.50 level first established in Nov 05. Momentum indicators are forecasting lower prices at least near term.

Although HDI belongs to the consumer discretionary space, its customer base overlaps little with Walmart's (NYSE:WMT). So I do not expect dynamics like high gas prices to apply, though reduced home equity extraction should put a pinch to its sales.

The short interest was 6.8% as of Jun 12, most of which I expect have covered during the sharp rally since then. Anything above $55.50 would get me out of this position: