Trade Ideas Newsletter 09/08/2016

HBI is at the beginning of a significant breakdown

Based on the previous analysis in HBI, traders should ensure that their portfolio can handle increased risk from an additional trade. Also check to make sure that HBI increases diversification of your current portfolio. Lastly, smart traders check how a new position relates to not just their account, but the current market action as well. For example, take a look at the S&P 500. Is it moving higher or lower? Has it recently moved through a key resistance or support level? Be sure to match up your trading actions on HBI in relation to the overall market movement.

CHART

Right now the custom sentiment levels, measured by Traders For Wealth, indicate an increasingly negative bias toward HBI. In addition, the price action in HBI has been moving down as well. This could be a strong sign of an impending breakdown. Traders should view this as a very bearish trade and make sure it matches up with the overall market, and their current portfolio.

Hanesbrands Inc (HBI)

Hanesbrands Inc. is a manufacturer and marketer of apparels. The Company operates through four segments: Innerwear, Activewear, Direct to Consumer and International. The Company’s portfolio of brands includes Hanes, Champion, Maidenform, DIM, Playtex, Bali, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Flexees, Lilyette and Gear for Sports. Its Hanes brand offers various products, including men’s, women’s and children’s underwear, bras, socks, T-shirts, fleece, shape wear and sheer hosiery. Its Champion brand offers athletic apparel, including sports bras, team uniforms, and gym essentials, such as T-shirts, mesh shorts and fleece hoodies. The Activewear segment sells basic branded products that are primarily seasonal in nature under the product categories of branded printwear and retail activewear, as well as licensed logo apparel. The Company also offers underwear, babywear and socks brand, Bonds, and sports bra brand Berlei.