Markets overcame some early afternoon weakness to go out at session highs with both the Nasdaq and S&P 500 gaining nearly .5%. Heading into Friday for the week the Nasdaq is up an impressive 1.8% and the S&P 500 by 1.2%.Could the risk on trade be back as energy rose 1.2% and utilities continue to lag as they were the worst performing group Thursday. A few retail names reported today and both have shady records of performance. BBBY fell 5.4% and it was its 4th fall in its last 5 releases. It fell 6.7, 7.2 and 6.2% on 1/9, 6/26 and 4/10 (it rose 7.4% on 9/24), not the type of consistency a shareholder likes to see. The stock fell below a symmetrical triangle formation and sliced its 50 day SMA as well in the process. Below is how we looked at BBBY in our Thursday 2/12 Game Plan. Looking back on its weekly chart one would see the difficulties the stock encountered at the round 80 handle dating all the way back to the first 2 weeks of January 2014. PIR rose 9% today, its second 9% plus earnings gain as it advanced 9.2% on 12/19, but Thursdays gain was aided by a 24% slicing on 2/11 after revising full year guidance. The 2 prior earnings reports for PIR slumped 18.5 and 13.1% on 9/18 and 6/19. Both of these names as well as stocks like WSM should benefit from a strengthening homebuilder market. WSM has slipped up 2 of its last 3 earnings reports declining 3.5 and 12% on 3/19 and 8/28. Even leader RH is down almost 10% rapidly from all time highs after shying away from the round par figure on 12/18 and 3/30-31. Could be something to keep an eye on going forward.
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