Taking a short swing-trade position in Michael Kors at $50.83 with a stop-loss at $52.01

michael kors shorting logoMichael Kors Holding (KORS), which until I just shorted it, I had no idea what this company did. But this apparel company is setting up nicely to swing trade to the short side. The strategy involved here is taking a position as close as possible to the price resistance it failed at. For me, that means taking a position at $50.83. 

Not only does it fail at resistance, but it is breaking what ever menial price support that it otherwise had. So I expect momentum to continue to pick up to the downside, particularly if the market has reached its dead-cat bounce highs here of late. 

But as always with short positions – I aim to collect 4-6% on these trades and not turn them into a longer-term play – that means booking gains aggressively, and not weighing the ‘what-if’s’. 

Here’s the short-trade swing setup in KORS

Michael Kors Holding Ltd KORS swing trade short setup

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