I have shorted 200 shares of ROST at $ 197 price. (Total $42K short)
**Fundamentals** ROSS Stores ROST is a discount retailer selling clothes for cheap. Their selling point is a treasure hunt experience 1) The fancy item you wanted at Macy's might be here today for cheap 2) Buy this right now if you like it, tomo it'll be gone. ROSS faces competition from instore labels (Costco, Kroger) and cheap online brands (Amazon basics) etc.
**Technicals** ROST is super extended in daily, weekly and monthly charts. ROST has not seen its 50 SMA since last October, its at high RSI 75 in weekly since November and has been going up for last 9 months!!
[ROST Daily Chart](https://preview.redd.it/u5n4tpduoxrg1.png?width=1220&format=png&auto=webp&s=df767d715667bef8c3568d92bd07a9ee3a93a14a)
[ROST Weekly](https://preview.redd.it/dn41g45zoxrg1.png?width=1005&format=png&auto=webp&s=71fc7f8292bf2266007df5924d9adb3a6be77aa5)
**Valuation** ROST is trading at a whopping 32 PE. Msft, Meta, Goog, Amzn are trading sub 25 and SPY itself is near 20 but ROST is in high league. The CEO has forecasted a whopping 3% growth for this year. Most of the EPS growth is coming through share buybacks.
**Insider selling** ROST has seen strong insider selling in last month.
[Insider sales](https://preview.redd.it/ix5t2twmoxrg1.png?width=1109&format=png&auto=webp&s=0bd7e9389dec2aca39a424999d0ed61c96fb1d75)
ROST is not an AI player nor have they invented some new drug. They pay a low dividend of 0.89% (T-bonds pay more). Its just the market sentiment gyrating towards physical goods and not software and such. Someday the sentiment has to change and ROST will have to meet its 50 SMA ($ 200) or 100 SMA ($ 180). Since the drop can take more time than I expect I have shorted 200 shares at around $ 197. ($42 K short position) It was originally a synthetic put but I closed the call for $ 1500 profit when I saw double top in their daily chart. Now I am naked short with these shares.
[Position](https://preview.redd.it/7sf7f8avpxrg1.png?width=861&format=png&auto=webp&s=17d17b1371fd16615efac2761b6c9097b91fafa3)
Lets see if the double top was a legitimate reversal or a bear trap to get me f\*cked 😰