In today's column, I followed up on retailers and how their stocks react poorly to good earnings. Expectations were set way too high and needed to be re-focused. That means lower prices.
One stock I cut out before editing was TJX. Here is what I wrote but never submitted:
Off-price apparel and home fashions retailer, TJX Companies (TJX), owner of the Marshall's and TJ Maxx chains, reported better than expected earnings on August 17and raised its outlook. Its stock barely moved and now sits on a very important support level below where it was before releasing its good news.
What that means is even a good earner is now trading below where it was before the good news came out. That is a rejection of the news as not being good enough. Support at 40.25 seems mighty critical to me and it closed at 40.56 today. I am not telling you what to do if it is broken but look at the chart and you tell me.
No comments:
Post a Comment