GYMB (Gymboree Corp)

Gymboree has had an incredible run over the last year rising from $12 to over 45 in a relatively short amount of time. The stock is not extremely expensive, but the reason for this is the fear that the fundamental growth could be slowing and so the stock will demand a smaller multiple.

Thursday, the company released their January sales and it was a dissapointment to investors. The stock sold off hard on the news breaching the 200 day average. The stock continued to trade lower yesterday as the overall market experienced weakness.

Looking at the technical picture, the stock hit a highe back in November but this was after a summer base that didn't shape up as well as one might have liked. The stock gapped out of the base without rounding out the right side which could be indicative of climactic buying when the last holdouts pour into the stock and then there are very few investors left to continue to support the stock.

For whatever reason, The overall market picture and the individual signs look a bit negative and I am looking for places to put short exposure on to offset my risk with the long names I am holding onto. So I shorted 9,000 shares at 36.63 to initiate a short position.