Some short notes
Looks like our short DineEquity (DIN) is starting to work. We adviced you two days ago to sell some calls (May 35 or 40 were probably the best) as the chart did look rather ridiculous with an RSI in the 90s and the stock having five folded in seven weeks.
We think the selling should probably go on a bit, but you could already lock in a 50% profit or so by buying these calls back. There is little chance this stock will close over 35, let alone over 40 by expiration day (two weeks from now), but if you don’t want to take any chances, close now.
We’re looking to get back into eFuture (EFUT) after consolidation, but we really want to get back in under 10.. This one is also overbought, but not nearly as much as DIN, and we like the fundamentals really a whole lot more..
FUQI and IOC are also blowing off some steam, but we’re not worried about either one of them.