Today's spotlight stock is Bed Bath & Beyond Inc. (BBBY), a short recommendation in the Retailing sector.
Long Ideas
| Stock | Symbol | Sector | Current Price | Action Price | Target | Stop | Notes |
|---|---|---|---|---|---|---|---|
| Pool Corporation | POOL | Leisure | $68.73 | 67-70 | 80 | 64/60 | 4/5'er, Favored Sector, Bullish Triangle formation. |
| Acadia Healthcare Company Inc | ACHC | Healthcare | $79.32 | 79-82 | 93 | 75 | 5/5'er, Favored sector, big base breakout to new all-time highs, monthly mom turned +. |
| Masonite International Corp | DOOR | Building | $67.90 | 68-71 | 84 | 65 | 4/5'er, top quartile of ITB/XHB RS matrix, big base breakout, pullback to MED, great R-R |
| Lincoln National Corporation | LNC | Insurance | $57.95 | 58-61 | 81 | 55/49 | 5/5'er, Favored sector, recent new all-time high, top quartile on INSU RS matrix, good R-R |
| Adobe Systems Incorporated | ADBE | Software | $80.98 | 80-83 | 93 | 77 | 3/5'er, Buy on Pullback Report, PB to middle of trading band and old highs. |
| comScore, Inc. | SCOR | Business Products | $56.63 | 55-59 | 85 | 51/44 | 5/5'er, PB to middle of trading band, Great R-R |
| Proofpoint Inc | PFPT | Software | $69.25 | mid-60s | 91 | 58 | 5/5'er, Positive Divergences, Top 10 rank in Software matrix, strong market niche (cyber security). |
| Harris Corporation | HRS | Telephone | $81.04 | 78-81 | 107 | 75/68 | 4/5'er, pot. Bullish Catapult, wkly momentum turned + after 10 wks, great R-R, div yield, almost top quartile on TELE RS matrix, |
| Casey's General Stores Inc | CASY | Retailing | $97.35 | 95-100 | 115 | 91 | 4/5'er, Favored Sector, Positive Divergences with recent move to new highs |
| Jack in the Box, Inc. | JACK | Restaurants | $91.62 | 88-92 | 108 inc. | 85 | 4/5'er, Top 5 Ranking in Restaurant Sector matrix, New near-term breakout reversing lower tops, Earn. 8/6. |
| Equinix, Inc. | EQIX | Internet | $276.06 | 260s | 336 | 248/212 | 5/5'er, Top 20 ranking in Nasdaq 100 matrix, #11 rank in INET sector matrix, Earn. 7/29. |
| Electronics For Imaging Inc | EFII | Computers | $45.41 | 45-48 | 63 | 42/35 | 5/5'er, Favored sector, big base breakout to multi-year highs, monthly momentum turned + after 14 mo. |
Short Ideas
| Stock | Symbol | Sector | Current Price | Action Price | Target | Stop | Notes |
|---|---|---|---|---|---|---|---|
| American Express Company | AXP | Finance | $75.90 | (75-77) | 69 | 82 | 1/5'er, Unfavored sector, Bearish Catapult formation, bottom quartile of FINA RS matrix, Lower Buy Stop to $82. |
| Insulet Corporation | PODD | Healthcare | $30.59 | (28-32) | 13 | 37 | 0/5'er, laggard in Favored group, bottom of HEAL RS matrix, Mkt and Peer RS sell signals, can use as short in Pairs trade with UNH, STJ or ACHC. |
| Autohome Inc. | ATHM | Internet | $41.10 | (41-45) | 31 | 50 | 1/5'er, laggard in INET sector, negative trend change, and negative diverger from mkt and sector, Earn. 8/5. |
| Eagle Materials, Inc. | EXP | Building | $74.69 | (mid-70s) | 60 | 82 | 2/5'er, Bearish Triangle pattern, low ranking in Building sector matrix. |
| Bed Bath & Beyond Inc. | BBBY | Retailing | $65.80 | 65-68 | 59 | 72 | 1 for 5'er, consecutive sell signals, negative trend, resides in bottom 3rd of favored RETA sector matrix, can use as short in Pairs trade with CASY |
Follow-Up Comments
| Comment |
|---|
| ROP Roper Technologies Inc. R ($164.56) - Machinery and Tools - Shares of ROP were down sharply on earnings, falling to $160 on the chart. It managed to recover above $164 by closing, but the day's action causes the violation of two previous bottoms with a breakdown at $164. Those long ROP from the roster recommendation earlier this year should trim here, if they haven't already done so. Remaining shares can be stopped out of with a trend violation, which from here would occur at $154. |
| VLO Valero Energy Corp R ($64.22) - Oil - VLO was added to the roster as a long idea a few months ago, and after managing a new 52-week high earlier this month at $68, it has since met resistance at that level forming a double top. With the most recent market action, it has returned to a column of O's and actually completed a double bottom, beginning a potential shakeout. Any reversal up into X's within the confines of this positive trend will be the next step in this potential pattern. Those with profits to protect can look to trim or hedge here, while those who can give the position more room can stick to the initial stop at $56 stop. |
DWA Spotlight Stock
BBBY Bed Bath & Beyond Inc. R ($65.09) - Retailing - BBBY has been consistent with a bearish pattern of lower tops and lower bottoms since April of this year. The most recent breakdown on the chart came in the form of a double bottom at $67, which also violated its positive trend line. As a result of the negative trend violation, the stock has downticked to a 1 for 5'er. Despite being a member of the favored Retailing sector, BBBY is a technically weak name and resides in the bottom third of the sector matrix. Additionally, weekly and monthly momentum remain negative here and the bearish price objective is $59. Okay to put on new short positions in BBBY between $65 and $68, while using a potential buy signal at $72 as the initial buy stop.
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| 80.00 | X | • | 80.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 79.00 | C | O | • | X | X | • | 79.00 | ||||||||||||||||||||||||||||||||||||||||||||||
| 78.00 | 8 | X | X | O | • | 1 | O | X | X | O | 4 | • | 78.00 | ||||||||||||||||||||||||||||||||||||||||
| 77.00 | X | O | X | X | O | X | 1 | • | X | O | X | O | X | O | X | X | O | • | 77.00 | ||||||||||||||||||||||||||||||||||
| 76.00 | • | X | O | X | O | X | O | X | O | • | X | O | X | O | X | O | 3 | O | X | O | • | Top | 76.00 | ||||||||||||||||||||||||||||||
| 75.00 | X | • | X | O | X | O | X | A | O | C | O | X | O | X | O | X | O | X | O | • | 75.00 | ||||||||||||||||||||||||||||||||
| 74.00 | X | X | O | • | X | O | X | O | X | O | X | O | X | 2 | O | X | O | O | X | • | 74.00 | ||||||||||||||||||||||||||||||||
| 73.00 | X | O | X | O | • | X | 9 | X | O | X | O | X | O | X | O | O | X | O | 73.00 | ||||||||||||||||||||||||||||||||||
| 72.00 | X | X | O | X | O | • | • | X | 7 | O | O | O | X | O | O | X | O | 72.00 | |||||||||||||||||||||||||||||||||||
| 71.00 | X | O | X | 6 | X | O | • | X | • | X | O | X | O | X | O | X | O | X | 71.00 | ||||||||||||||||||||||||||||||||||
| 70.00 | O | X | O | X | O | O | X | O | • | 5 | X | O | X | O | 4 | X | 5 | X | 6 | X | O | 70.00 | |||||||||||||||||||||||||||||||
| 69.00 | O | X | O | O | X | O | • | X | O | X | O | X | • | O | 3 | O | X | O | O | X | O | Med | 69.00 | ||||||||||||||||||||||||||||||
| 68.00 | 5 | X | O | 9 | O | • | X | X | O | X | O | • | O | X | O | B | O | • | 7 | 68.00 | |||||||||||||||||||||||||||||||||
| 67.00 | O | O | X | O | • | X | O | X | 6 | • | O | X | O | X | X | • | • | O | 67.00 | ||||||||||||||||||||||||||||||||||
| 66.00 | O | X | O | • | 4 | O | X | • | O | X | O | X | O | X | • | O | 66.00 | ||||||||||||||||||||||||||||||||||||
| 65.00 | O | X | O | • | X | O | X | • | O | X | O | 9 | O | X | • | 65.00 | |||||||||||||||||||||||||||||||||||||
| 64.00 | O | X | O | X | O | • | O | X | O | X | A | X | • | 64.00 | |||||||||||||||||||||||||||||||||||||||
| 63.00 | O | X | X | X | O | X | • | 2 | O | X | O | • | Bot | 63.00 | |||||||||||||||||||||||||||||||||||||||
| 62.00 | O | 7 | O | X | O | X | O | X | • | O | X | • | 62.00 | ||||||||||||||||||||||||||||||||||||||||
| 61.00 | • | O | X | O | X | O | X | A | X | • | 5 | X | • | 61.00 | |||||||||||||||||||||||||||||||||||||||
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| 58.00 | • | • | O | X | O | X | O | 1 | O | X | • | O | 7 | • | 58.00 | ||||||||||||||||||||||||||||||||||||||
| 57.00 | • | O | X | C | O | X | O | • | O | X | • | 57.00 | |||||||||||||||||||||||||||||||||||||||||
| 56.00 | • | B | O | X | • | O | X | • | 56.00 | ||||||||||||||||||||||||||||||||||||||||||||
| 55.00 | O | • | O | • | 55.00 | ||||||||||||||||||||||||||||||||||||||||||||||||
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