I was going over the IBD 100 yesterday and noticed quite a few broadening top patterns. Such patterns are difficult to time but are usually very bearish. We’ll have to see what happens with these.
You’ll notice Flotek Industries on the list. This is getting close to a major pullback. FTK has gone way too far too fast and with growth to moderate in the coming quarters I expect to see a 40% haircut. As you might know, I owned FTK last year and rode it from 7 to 15 (pre split). I would now like to make some money on the short side.
Their last 10K report little progress with their petrovalve products. Most growth is still coming from their specialty chemicals and I would expect some of the big names to begin offering their own “green” chemicals.
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