The stock has been on a tear this week, but I'd be surprised if it's because the cud-chewing herd has caught the bullish scent of factors cited in yesterday's commentary. We'll sit back for now, since the 6.76 bear market target identified in yesterday's commentary still looks pretty compelling. If the stock impulses above the 14.97 peak recorded on November 16, though, we may have to jump in. Meanwhile, the chart shows a 14.52 rally target in prospect if its sibling midpoint at 13.59 is swept aside. _____ UPDATE (December 7, 12:40 a.m. EST): The stock has relapsed after having rallied no higher than 13.49. (Please note: The "Last Price" will always be the price of the stock at the time of the original post, or, when applicable, the last update.) _______ UPDATE (December 24, 11:58 a.m. EST): Following an idiotic, one-day short-squeeze frenzy 25% above the market, Best Buy has relapsed and is flirting with new lows. Under the circumstances, we'll continue to wait for that fabulous buying opportunity down near 6.76. I still think the company is on the mend, but it could still take a few months before investors have their belated epiphany. ______ UPDATE (January 15 at 1:21 p.m. EST): An explosive rally begun last Friday holds great encouragement for beleaguered shareholders. The so far high of the move is 14.67, and although it would take quite a bit more than that -- specifically, a push exceeding 48.83(!) -- to negate the 6.76 bear-market target, the thrust so far is powerful enough to have turned the daily chart (if not yet the weekly; that would take a print at 21.61) bullishly impulsive. What this means is that, 6.76 target or not, the stock is a short- to intermediate term "buy" on any b-c pullback from 14.67
Thursday, November 29, 2012
DIA – Dow Industrials ETF (Last:130.10)
– Posted in: Current Touts Rick's PicksThe short-able 'p' alluded to in today's commentary lies at exactly 132.57, and it's as good a place as any to initiate a speculative short. We did this repeatedly in the E-Mini S&Ps with gratifying results, but I've chosen DIA as a vehicle here because it will allow subscribers with equity accounts to play. Because there is no rule that says this vehicle must reach our target, we'll need to be alert to a downtrending impulsive leg from here on up. Meanwhile, I've set a screen alert at 132.15, which is about where we should start looking diligently for a 'logical' and tradable reversal. If you see one and you're in the chat room, by all means please call it out. ______ UPDATE (December 2, 6:43 p.m. EST): No change. This still looks like a low-risk leveraging opportunity to me. Make sure you've checked 'E-Mail Notifications' on the 'My Account' page if you want to receive a trading alert in timely fashion.
Diamonds Are the Play
– Posted in: Free Rick's PicksThe DIA tout in today's list provides a precise rally target where we can attempt to get short speculatively. My goal is to make this trade simple enough for relative novices to execute, but also to keep risk down to relative pocket change (i.e., less than $100 theoretical). If you want to be alerted to the opportunity in real time, please make sure that you've checked the 'E-Mail Notifications' box on you 'My Account' page. (And if you don't subscribe, click here for an offer you can't refuse.)
