Our latest short idea to take advantage of the current pullback in the broader market is mid-cap apparel company, PVH Corp. (PVH):
PVH looks poised for a bigger pullback after failing near long-term resistance from previous support and the weekly cloud model, noting short-term momentum has weakened notably in reaction to intermediate-term overbought conditions.
Relative to the S&P 500 Index (SPX), PVH flashed a counter-trend “sell” signal per the DeMARK Indicators last week, which led to a drop-off in underperformance this week. The signal supports a bigger pullback in relative terms after an extended period of outperformance from September through January.
Long-term support from the 200-day moving average can be used as targeted support, which is currently near $65. A stop-loss level can be gauged by the top of this Wednesday’s gap lower, near $87.
PVH Corp. (PVH, $80.05):
Target: $65
Stop-Loss: $87