TIF hit $65.75 in the latter part of December 2010 and attempted to retest that level last week. It came close but has fallen hard since. The stock almost quadrupled from the low in early 2009 to the high of December 2010.
1. As it relates to the global recovery, I am doubtful that the rally in this stock has been purely driven by demand. Certainly it may have been undervalued in 2009, but unless the Chinese are substituting food for jewlery purchases I find these new all-time high levels in TIF a little lofty.
2. Purely technically speaking, I see the double top formation in the charts as a potential shorting opportunity…but a little too early for my taste as I want to see some more backing and filling before the stock could fall much more.
