Fundamentally, I think this will be a very good season for Best Buy for a few reasons. Obviously there is a big buzz around the game industry right now and they seem to have cornered the nintendo wii market. I tried to get a wii at my local best buy last week and today. They had 100 on the launch and 70 this morning on the second shipment. Since I didn't camp out I was not able to pick one up on either occasion like many many others even though i was there before the store opened. I did however end up buying a bunch of dvd's for x-mas presents... This compares with my local GME. They had twelve wii's on the launch day and one, yes one on the second shipment. Plus the whole issue surrounding used games that i keep talking about with GME doesn't exist with BBY. Another reason is this new best buy rewards program they have going this year. I am a memeber and without going into details let me just say that I think it will be very effective in gaining market share this year.
Another possible play this week on retail is Chicos, CHS. They report earnings after the close on tuesday, so like JWN wait until wednesday morning to jump in if they impress. The chart is set up for a nice breakout if it can move above 25$ on this report. So I would buy the 25$ dec or jan calls on wednesday morning about 15 min after the open if it gaps up and moves over 25. Oh and by the way, congrats to those who took my advice on JWN. That stock moved as expected and made new all time highs in the lower 50's last week after reporting. Here's a fun fact, Nordstroms's (JWN) only has two sales a year and neither occurs duing the holidays. They get the surge in shoppers on black friday like all the other retailers, but they don't have to pay for it with major discounts. That is one well run company, imo.I also still like ADM long for a swing trade, it seems to have found support. That stock will move like Deere (DE) once people realize they are profiting off the corn spike as well (why DE has been so strong). Also, here is a random energy stock chart that I like alot, especially if we get a move in oil (which I have been expecting). The buy trigger on MEE is 26, as close above this price will complete a perfect inverted head and shoulders:
Remember, if you miss the breakout look for a throwback to the breakout price intraday or in the following weeks. The odds of getting a throwback depends on the pattern, statistics can be found in the links above. Don't chase a stock that you have clearly missed the boat on. Good luck, and congrats on those ENR profits! -pyth
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The optimistic predictions on the MEE charts have proved accurate. However, caution is in order. The company is clearly in a great deal of trouble for many reasons and is simply positioning itself for merging or acquisition. When the financial community finally comprehends MEE's recent earnings, the loss of confidence will likely continue MEE's downward trending.
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