Crocs (CROX) explodes in direction of Trend

Crocs (CROX) is now up another $8 at an all-time high tonight. We profiled the ‘overpriced’ stock at $36 on Wallstrip and have revisited a few times since. Obviously the earnings traders were caught short.

It is the perfect example of a big price move happening in the direction of the trend.

Lately, each day brings a new massive upside surprise in the market. It tells me that lot’s of speculative money is trading at the edges of the market and they are leaning short. That’s bullish for prices, at least short-term.

The shorts are just scratching their heads and digging in further. They were short CROX in the $20’s. Pain.

I sold my CROX for a big gain almost $20 ago and that was just wrong. Most prescient is the comment I received today from a reader:

You are a trend follower buying new highs, however it seems you skip a lot of new high trades based on fundamental analysis, isn’t the all idea of trend following is to follow price and not think to me sort of idea?

Here is my answer:

Shame on me. I do skip most highs and do inject a personal fundamental screen. I don’t have the time or capital to do exactly as I preach. Likely the reason I am far from retiring. It is also why I am always looking for a better moustrap, writing about and talking to trend followers. My friends at Blackstar buy each and every all-time high and likely have 1,600 plus stocks in their portfolio these days .