CROX Gets Bitten – Twice Shy

Apr 16, 2008: 10:40 AM CST

Crocs Inc (CROX), makers of the unique, comfortable shoes, has suffered yet another downside gap today. What should you do with the stock – if anything?

Notice the strong down-trend which has been prevalent prior to the start of 2008. Since then, the stock experienced two downside gaps which were unfilled (also known as continuation gaps – the February gap may also be deemed a “measured gap”).

This showed that momentum was strong to the downside as sellers were unrelenting in their campaign to rid their accounts of this stock.

The weekly chart shows an even more negative picture:

According to the Associated Press (April 15th): “Crocs Inc. announced guidance cuts that one analyst termed “stunning,” amid lower-than-expected demand. Crocs reduced its first-quarter outlook far below analyst expectations late Monday, citing weak sales and costs.”

Adam Hewison provides more information regarding CROX in his brief educational video entitled “I Love Their Shoes but I Wouldn’t Buy Their Stock!

Here are a few brief excerpts from the video commentary:

“We have been negative on Crocs (CROX) since November 2, 2007 when our “Trade Triangle” technology signaled a change in trend at 44.10. The downward trend for this stock in the past six months has been relentless.”

Hewison provides simple commentary to complex situations:

“One of the great things about MarketClub’s “Trade Triangle” technology is how it keeps you out of stocks when the market is headed south. Most investors tend to trade from the long side of the market, so their greatest risk and their Achilles heel has got to be when a stock they’re holding turns down.”

“Normally when this happens the fundamentals still look very strong. However, when you use our “Trade Triangle” technology you don’t have to guess at the trend anymore.”

Check out the video and moreover, see if Market Club’s service (which has earned my approval), trading signals, and daily news/commentary are right for you.

Oh, and always be careful of overhyped stocks! CROX was one of the darling “can do no wrong” stocks of 2007.

1 Comment

One Response to “CROX Gets Bitten – Twice Shy”

  1. JIM PETRILLO Says:

    BUY WHEN THERE IS BLOOD IN THE STREETS! COLD STOCK BUT ARE THE PRODUCTS SELLING? WILL ADVERTISING PLAN WORK FOR CROCS?CROX IS UNDER 10 NOT 60!