Make Money Trading While You Lose Weight – Weight Watchers

Dragonfly Capital Views Anniversary Celebration Sale Ends Tonight!


I put on some weight this summer while spending my free 2 hours every day writing a book. There is my wife the fitness addict and instructor pushing me to do something about it so naturally my first thought is to turn to something where I do not have to workout. There are three choices that come to mind, GNC, $GNC, and Nutrisystem, $NTRI, and then Weight watchers, $WTW. As a stock trader I naturally has to check out their charts first. I did that this weekend and choose GNC, $GNC as a Top 10 Pick for my subscribers. It has broken out and run a bit higher but still looks good. As does Nutrisystem, $NTRI, which has also broken out of a resistance area and is running.


That leaves Weight Watchers, $WTW. The chart above shows that this this name is also consolidating, after a big gap down move August 2nd after cutting their forecast. But since making a double bottom at 35.80 it moved back higher into the consolidation over the 20 day Simple Moving Average (SMA). Now it is pressing against resistance at 38.20 as the Relative Strength Index (RSI) rises and the MACD moves higher. Both support more upside price action and a break out higher to join the other weight loss companies. The Marubozu candle building Tuesday is also bullish. Finally the Bollinger band squeeze indicates possible action in the near term. One could enter over 38.20 with a stock around the 20 day SMA. Short interest is elevated at nearly 10% and could get it running higher should it get over resistance at 39.13. The gap fill higher is all the way up at 47. One could also consider using options with the October 37.5/40 Call Spread priced around $1 with very large Open Interest for October at the 40 Strike.


Dragonfly Capital Views Anniversary Celebration Sale Ends Tonight!

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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