We didn’t buy Hims and Hers Health (HIMS) a few weeks ago because of the company’s “get hard & stay hard/anytime the mood strikes” pills for men who feel the need for a little extra oomph.
These “Hard Mints” might make for a great time, depending on how you look at it.
Some of the people I respect most in this business have a problem with this company and would never buy it.
But short interest in HIMS was up close to 30% of the float.
And you know how I feel about a stock everyone hates…
Especially when it’s pulled back to former resistance.
It’s the first thing you learn in Technical Analysis Kindergarten: Polarity, when former resistance turns into support.
Think of it as the physics of the market.
These are the “higher highs” that you hear about.
And you need “higher highs” to officially have an uptrend.
This is where the book says to buy it.
Old Resistance, New Support
You see those former highs from 2021?
That was resistance once again last year, near the 24 level.
Well, all that former resistance turned into support over the past month.
Here’s what that looks like:
This resistance goes back several years.
And, where there was more supply than demand — or, where there were more sellers than buyers — is now the opposite.
There are more buyers than sellers.
We know.
That breakout earlier this year was evidence that demand had finally been able to finish absorbing any overhead supply in place since the last cycle.
Now, we know near that 24 level is where demand overwhelms supply.
There are more buyers than sellers at that price.
Here’s a zoomed-in look at how prices have reacted this year to the 2024 highs, since our purchase a few weeks ago:
Keep in mind that these spring 2024 highs are the same levels where prices peaked in 2021.
And that same level has been support so far in 2025.
Now here we are making new multi-month highs.
The “This Makes No Sense” List
HIMS released their earnings on Monday night.
And everyone is out there telling me just how bad their earnings were.
They “missed” across the board.
But despite that “bad news,” HIMS rallied 18% on Tuesday, the day after the earnings release.
When a stock can’t fall on bad news, that’s a tell for me right there.
We’re already long the stock, so we’re thrilled.
But it’s another great example of the power of polarity.
If you were wondering what polarity looks like in real time, this is it…
Stay sharp,
JC Parets, CMT
Founder, TrendLabs