munsterisque's  Instablog

Send Message
Part Time Investor, part time researcher. Swing Trader, with some long term focus on a handful of stocks
  • Fairway Group Holdings (FWM) - Swing Trade For 43% Gain 0 comments
    Feb 18, 2014 11:25 AM | about stocks: FWM

    For those who haven't been watching this stock, FWM has crashed from a high of $28.88 (July 2014), to $7.21 today. The drop has been relentless, with nary a pause on the way down.

    With any strong downward movement, there is typically a strong bounce as well. Which is what we want to play off of in this simple Swing Trade.

    There are 2 reasonable, conservative swing trades possible here:

    1. Buy at $7.4 and sell at $10.

    Sell at $10 because that's where the stock will meet the 50sma (Simple Moving Average), and also because $10 is a big Psychological barrier for many stock traders (43% Gain).

    2. Buy at $7.4, and sell at $14, which is close to the 38% Fib Retrace of the FWM last-high ($25.72), as well as where the stock price will meet the 20sma. This trade may take a little longer to hit, but still very reasonable (100% Gain!)

    It's also possible to do a combo of the 2 plans, sell some at $10, sell the rest at $14. I would also recommend a phased buy in over a few days, to ensure you buy at bottom, or at least close to it.

    Additional Notes: As of Jan 31, 2014, 28.8% of the stock was shorted. I can see a great case to short this stock at its previous $20+ price, but at $7.5, I don't think there's a case anymore. Once this stock starts it's upward bounce, there will be a short-squeeze that will help propel FWM up.

    Disclosure: I am long FWM.

    Stocks: FWM
Back To munsterisque's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


  • $FWM - Swing Trade For 43% Gain $FWM
    Feb 18, 2014
  • $NGVC: Holy Cow, 8.5% increase today. Did they get an upgrade?
    Jul 5, 2013
  • In the words of Admiral Akbar: "It's a Trap!" Shorts are killing $BBRY today, and they won't stop till $13. I'm waiting till Wed
    Mar 22, 2013
More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.