BullBear Trading: Stock and Financial Market Technical Analysis

Why The Sharp Sell In J C Penney (JCP) May Have Nothing To Do With Earnings...

J C Penney Company Inc (NYSE:JCP) is flushing again today, following Friday's poor earnings report. The stock is down over 26% in the last week as all retailers are collapsing. Today, the stock hit a low of the day at $4.17 and I am here to say it may be a strong buy. In fact, I am here to say that it is possible that today's flush from $4.53 to $4.17 has nothing to do with poor earnings and is a result of certain funds not being able to hold stocks that are below $5.00.

Please be aware, this is not all funds, definitely not hedge funds and such. However, it is enough to create added selling pressure today. What does it mean? It may mean that this selling today is just a result of these funds selling and once it has concluded, it will snap back quickly. Earnings, while not great, were alright. In my opinion, not worth a 26% selloff. I think J C Penney Company Inc is extremely interesting down in this sub $4.35 range if my thesis is correct. Just something to ponder.

Gareth Soloway

InTheMoneyStocks

Views: 27

Reply to This

Join BullBear Traders

 
Free 30 Day Trial
No Credit Card Required

SUBSCRIBE Here
  

Pay with Cryptocurrency and SAVE!

6 Months BullBear Trading

for $100

(regularly $120.00)

 

Steven Vincent's market analysis is published on:

Steven Vincent's opinion is polled every week for the Birinyi Associates
TickerSense Blogger Sentiment Poll

© 2024   Created by Steven Vincent.   Powered by

Badges  |  Report an Issue  |  Terms of Service