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BGP and ZLC: Charts ready to divebomb?

|Includes: Borders Group, Inc. (BGPIQ), ZLC

Take a look at the weekly charts for both BGP and ZLC. The suggestion from those two charts in my opinion is that of a gigantic grizzly bear (figuratively, of course), much like the one I saw in a small Alaskan airport on our way to and fro Okinawa Japan when I was in the Marines.

Here they are:

BGP Weekly
bgp chart

ZLC Weekly
zlc weekly

Investors that got in during the first quarter of last year now are faced with a dilemna. They are looking at locking in decent profits and possibly missing out on a big recovery, but at the same time taking their money out of harms way as the bankruptcy jitters start to increase, at least lately.

Short interest is around 6% for BGP and 8% for ZLC, which is a bit perplexing since these companies are reportedly in deep doo doo financially. Watch for short interest to increase before these two stocks take a nose dive at their 52 week lows again.

An easy way to track short interest is to hop over to http://www.shortsqueeze.com
and punch in the ticker every day or two.

I think these stocks will be fun to play from the long side (at some point) if their respective situations are closely monitored, both fundamentally and technically. Sometimes I alert my subscribers to stocks after they file for bankruptcy, and we have played several for +100% gains. Sign up for 3 free penny stock picks at Microcapmillionaires.com.

-Matt

P.S. Here is a pic I found...I think it's the actual bear I saw there in the airport:




Disclosure: No position