The consumer discretionary group is beginning to act well with some recent names like KORS DNKN and TGT to name a few. It is even starting to outperform the staples which could be a good sign for the markets. Below we look at a chart from BKE and how it was precisely presented in our Tuesday 2/16 Game Plan. The stock has the appearance of having a trend change similar to a name like SHOO which has sprung back above its 50 day SMA after spending a lengthy time underneath.
Stocks that can be bought after recent trend changes are BKE. BKE is a former best of breed retail play attempting to recapture that lofty status. The stock is lower 5% YTD and 41% over the last one year period and sports a dividend yield of 3.4%. It has produced 4 consecutive negative earnings reactions dropping 2.1, 2.4, 2.3 and 1.5% on 11/19, 8/20, 5/21 and 3/13. It recorded a nasty year last year losing ground 30 of 45 weeks between weeks ending 1/16/15-11/20/15. The week ending 1/16/15 tried to breakout above a long cup base trigger of 52.29 but came up about one point short and started into a tailspin. BKE is higher 4 of the last 5 weeks and CLOSED above its 50 day SMA Friday for the first time since last July (this week showed great relative strength up 3.9%). Enter here.