As promised, the Q2 High-Dividend Fund Report is complete and available in the EOM Members Vault. I will begin reporting on it tomorrow-Wednesday.
For today’s analysis, I designed a new chart for JC Penny, focusing on seasonality opportunitie$.
Institutions and retail traders have shorted JCP and other retail stocks hard and may lead to additional opportunities. How? In the last three years, there have been rallies, beginning in mid-summer and running into the fall.
Some rallies have been linked to (earnings) back-to-school sales. I will add, short-covering can also be a factor.
1. Top Box-JCP is trading with an inverse correlation -.69 to the SPX
2. No dividends
3. Summer to fall runs are highlighted
4. Current downturn from the December 2016 SS Sell Signal is 55%
1. If JCP closes over the 6 MA ($4.79) watch for additional (buying) short-covering
2. If JCP rallies above $5, it becomes marginable
3. Marginable means traders can trade additional shares with borrowed funds
4. Our indicators will give clues to IF a rally will have legs, leading to the possibility of a nice mid-summer to fall run
5. Don’t overlook pricing calls if JPC decides to run or puts if a rally fails
Enjoy your day!
David O. England