Short Wayfair
Mis à jour
An ascending broadening wedge has formed. I strongly believe 
W will gap down to $85 after earnings (August 2nd, 2018), which is the 200d MA. Furthermore, I will make a shot in the dark and consider the extremely unlikely scenario (probability of 1%) that we gap down to $65, which is the bottom rising trend line of the ascending broadening wedge, which I believe will be due to an extremely bad earnings report where there is a huge net loss and a major revenue miss, relative to past reports. At this point in time, Wayfair is on a trajectory to bankruptcy. I encourage everyone to view the most recent quarterly report to confirm this trajectory.
Also, please view additional details here for my bearish observations/explanations: stocktwits.com/TheSwinger/message/131811443
There have been a lot of customer complaints lately with regards to Wayfair's business practices (e.g. high cost for return shipping, damaged items on arrival, serious shipping delays, items not as described as shown in photos, etc.).
Interest rates are rising, which would put further pressure on the company to repay its debt. It is already distressed. It has never earned a net profit in a single quarter. Higher rates will only further exacerbate the financial health of its balance sheet and cash flows.
W will gap down to $85 after earnings (August 2nd, 2018), which is the 200d MA. Furthermore, I will make a shot in the dark and consider the extremely unlikely scenario (probability of 1%) that we gap down to $65, which is the bottom rising trend line of the ascending broadening wedge, which I believe will be due to an extremely bad earnings report where there is a huge net loss and a major revenue miss, relative to past reports. At this point in time, Wayfair is on a trajectory to bankruptcy. I encourage everyone to view the most recent quarterly report to confirm this trajectory.Also, please view additional details here for my bearish observations/explanations: stocktwits.com/TheSwinger/message/131811443
There have been a lot of customer complaints lately with regards to Wayfair's business practices (e.g. high cost for return shipping, damaged items on arrival, serious shipping delays, items not as described as shown in photos, etc.).
Interest rates are rising, which would put further pressure on the company to repay its debt. It is already distressed. It has never earned a net profit in a single quarter. Higher rates will only further exacerbate the financial health of its balance sheet and cash flows.
Note
Pre-market gap down to $94 area then quickly moved to a high of about $120 after conference call for future guidance. This is still a short play opportunity, but it's probably best to stop out for now.
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