Algo Beatdowns

Professor Bierman here…

And today was a day for algo beatdowns…

The algos clubbed together and just pummeled the living daylights out of specific stocks like beauty retailer ULTA… who got absolutely CLOCKED! 

The backdrop:

Last night… PVH (Phillips-Van Heusen) was the trigger.

They sent shockwaves across the retail industry… shaking millions of shirts right off their hangers… with “weak revenue guidance.” 

When ULTA opened this morning, the stock went on sale, the algos smelled blood, and you can see what happened.

The algos sensed the selling pressure right from the get-go…

Giving you ample time to buy puts on ULTA, and end up feeling bronzed, beautified, and quite a bit richer. 

And then we’ve got Abercrombie & Fitch…

Same story! 

Algos give you ample time to get into trades and ride the directional moves they create.

Only a fool would trade against them!

They are the U.S Army.

You are a plucky fellow with a pea shooter.

Good luck on that battlefield.

My suggestion:

Keep reading Man Versus Machines and find out how you can ride the backs of these algo armies. 

To your success,

Professor Jeff Bierman, CMT

Founder, TheQuantGuy.com