eGoose Market Call for members...

KKD:  Krispy Kreme Doughnuts has been on our target short watch list for
many days and, in fact, we have shorted many times, waiting patiently for
new low risk opportunities.  The above is a weekly chart.  Although no
doubt that KKD is in a powerful uptrend, it is simply overbought on
multiple time frames.  As you can see, the weekly bar closed with a
Japanese "hanging man," a short-term reversal signal after an extended
run.  Last Friday's bar was a huge bearish engulfing bar, also suggesting
lower prices.  The daily OBV, RSI, CCI, MADC Histogram, stochastics, money
flow, and price volume trend are all overbought and rolling over.  The red
rising trend line gives a target between 62-63, just above the 38.2%
Fibonacci retracement shows from the low on the week of 4/6.  this is alto
where a prior overbought reversal area failed; however, the "measured
move" from that failure has been satisfied with last week's gains.  The
most recent runup was partially due to short covering.  KKD had
approximately 28 millinon shares outstanding after the march split,
although only 11.5 million were eligible for trading.  By the end of
April, another 14.8 million shares were released from lock up.  As of
mid-May, short interest had fallen to 5.9 million shares from a peak of
9.9 million in mid-March.  Those shorts undoubtedly felt great pain, but
the technicals are suggesting that the buying euphoria is coming to an
end.  Horizontal support with a 50% Fibonacci retracement would give a
target around 52-53.  Consider SHORTING KKD with a limit of 71.25.
Suggested target is OPEN.  Suggested stop is 72.70.

To view the chart for today's selection, click:
http://www.worldwidetraders.com/eGoose20010604.pdf. Make sure you review
the eGoose Gap Rules on how to play suggested trades, which may be found
following today's chart on the link above.

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http://www.worldwidetraders.com/marketcallpublic.htm

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