Our Analysis : " Classic Dead Cat Bounce" $ 16.65 Next Resistance
The market was up 96 points and KKD could only stay flat. Even a novice investor can predict the obvious. KKD made a fast run to $ 19.50 early on; but gave it all back. If this stock weren't technically broken, it would have held above $ 19.40. Wells Fargo is now advising October $ 16 puts to expire on the 19th. This is a conservative approach. Our high risk options clients are looking at November $ 13 puts. If there is an action in Syria over the next month or a problem with debt ceiling budgeting; the KKD drop will mirror last Tuesday. The rise in KKD was fueled from the last earnings report; last June. Technically; the news has reversed; and the June first price target is in play. Wells Fargo advises clients on a technical basis; not emotion or company bias. We encourage new clients to contact us for option plays that emerge every week. Buy stocks for slow money. Buy options for fast money. Get ready for another cash open.