Weight loss is becoming popular again, and the media are dropping out of favour.

Weight Watchers has been in trouble for quite a while, their share price has been dropping and dropping. Until now, that is, when it seems to be rising:

2014 09 27 Weight Watchers international

The price fell in the middle of July this year to  a low of just over $19. This wasn't quite as low as it fell in 2009 ($16.40), but this sort of level seems to represent support. Since then the price has been rising, and this week it crossed the average price for the year, finishing above it. Admittedly, this could be a false dawn, as there has been no crossing yet of the longer MA by the shorter MA. But this could be the start of a gradual move up. I will be opening a long position in Weight Watchers next week

Of course, Weight Watchers is a US stock. The prices of 51 of 500 largest US stocks, in the last week, fell below their average for the past year. Only 4 of them rose above their  average for the year. S,o whilst I am optimistic about the price of Weight Watchers rising, I am pessimistic about the US markets in general, so I want to be able to profit from falling prices. CBS Corporation has been falling for a while. Its graph shows a succession of lower lows and lower highs. This week it made a lower low, and its 30 MA crossed below its 50MA. Good reasons, therefore, from a technical perspective, to go short, and I plan to open a short position this coming week.

2014 09 27 CBS Corporation

 

If you are interested in my views of how the markets have been this week, then click here to see a video (8mins)

If you would like to see how my positions are progressing and my thoughts about the trades then click here to watch a video (15mins).

As ever, these trades are only information about what I am doing, and should not be taken as recommendations for anyone else. If in doubt about this, see my disclaimer here.

Have a great week!

 

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