Restarted a small 50 shares short position at 127.44. This could be when RL cuts through support, coincidentally along with lower expected economic growth here and in other parts of the world, as well. A strengthening dollar is also negative for RL, though a strengthening dollar is positive for people with dollars, such as us.
I actually covered my small short position yesterday because I didn't even want to spend time watching RL. Of course the stock will plummet several points now! I think the many new short positions put on yesterday afternoon will work out better. It is tempting to re-short RL up here, but I'll try to avoid the temptation.
I'm tempted to add to my small short position, especially since RL could dip back below support later today. The only issue is that with oil likely having topped out for the day and some very overpriced tech out there, I don't know if RL is worth following with more than my small short position which I'll leave there as long as needed.
Everfoxy you know the score. RL is highly manipulated by GS (RL's banker) and they can move the stock .50cents on less than 300 shares. Anyone buying at this ridiculous valuation is a fool. Like it's going to $150 and people are buying these overpriced clothes daily? Owning this for the dividend is a fool's game. As I said this POS can move .50cents on a few hundred shares. the spread alone kills the dividend.
Thanks. I can see that RL is being played.
I commented on the dividend because the upcoming dividend was given as a reason to be long RL. This stock's fluctuations up and down are more significant than its dividend. That's actually true for most stocks and the dividend argument for owning any stock (except possibly an MLP) is specious.
Though tempted to add to RL this morning, I haven't. The dividend of 12 1/2 cents per share or $12.5 per round lot wouldn't scare me. I'm guessing that the cost of waiting for the dividend will be more than wiped out by any dip in the stock. I do agree that this is a manipulated stock though and likely won't add to my small short position in it today, especially not when other positions have been working so well.
IMHO it will go down now and is about to break support and then go down below 120 and keep going down. I haven't been near RL in over a year, but just decided it was worth trying a short on at 120.42. If it doesn't work soon I'll be out, but I'm willing to give this stock a few days and more if it appears to be working out.
Oops. I was uncomfortable with that move and covered it within "pennies" of where I'd shorted it. There were several factors that gave me second thoughts, including the "float" I haven't ruled out shorting RL, but wasn't ready to do it at that time of day and in view of other successful short positions in tech and energy that I'm still holding.