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  1. #1
    Specialist Member RCox's Avatar

    Short/Long Term Divergence Seen in JC Penney !!!

    Short/Long Term Divergence Seen in JC Penney

    Markets are trading mostly sideways ahead of Ben Bernanke's congressional testimony. Most of the other Fed commentaries this week have bee unsupportive of additional stimulus, and this leaves stocks vulnerable as they trade near the highs. For JCPenney, consistent earnings misses create a bearish fundamental picture that is supported by price analysis as well.

    Specifically, when we look at the long term charts (weeklies), prices are caught in a well-defined downtrend channel. But when we switch to the hourlies, we are trading in a clear uptrend channel. This is very bearish because it allows for an opportunity to sell into an upside correction when the dominant monentum is focused on the downside. We are also seeing a lower top in the upper 18s, so we can start to look for hourly PUTS in JCP on a clean break below 18. This would invalidate the short term uptrend channel and put the focus back on the long term bear trajectory.

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  2. #2
    Specialist Member LesterK's Avatar
    J.C. Penney is trading up in today session after positive market reaction on the FOMC statement. It is close to 19 now, so I think the put setup is still not active.

  3. #3
    Junior Member anderson's Avatar
    J.C. Penny is a retailer and it has good perspectives for growth, also it is close to its 2009 low and looks undervalued in terms of cash flows and P/B. Probably it has some problems with its operational margins but that could be overcome very quickly which could lead the prices very quickly to higher levels.

  4. #4
    Veteran Member's Avatar
    J.C Penny also re-appointed its previously barred CEO whom with the stakeholders were fine... although the firm cudnt get a good kick-back after him, so prospects for growth are still there as the investor confidence is greater than before...

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