NEW BEARISH Plays

Deckers Outdoor Corp - DECK - close 49.31 change +1.43 stop 51.15

Company Description:
Deckers Outdoor Corporation is engaged in designing, producing, marketing and brand managing of footwear and accessories. The Company sells its products, including accessories, such as handbags, headwear, packs and outerwear, through domestic retailers and international distributors and directly to the consumers, both domestically and internationally, through its Websites, call centers, retail concept stores and retail outlet stores. The Company markets its products under three brands: UGG, Teva and Simple.

Target(s): 47.40, 46.10
Key Support/Resistance Areas: 50.25, 45.00, 43.50
Time Frame: 1 to 2 weeks

Why We Like It:
The retail sector has experienced an impressive string of consecutive advances and is due for pullback with the broader market. DECK has overhead resistance and is sitting just below a downtrend line that began with its 52-week highs in June. I suggest readers initiate short positions at current levels and play for -4% to -6.5% pullback. Our stop will be above the downtrend line and it will be adjusted after we are in the trade.

Suggested Position: Short DECK stock at current levels.

Annotated chart:

Entry on September xx
Earnings: 10/21/2010 (unconfirmed)
Average Daily Volume: 859,000
Listed on September 20, 2010