Nice Gain for JC Penny Inc (NYSE: JCP)
but Decline Remains Intact Says Market Timer Frank Kollar
February 2, 2010 (FinancialWire) (By Frank Kollar)
Shares of JC Penny Inc (NYSE: JCP) had a nice bounce on
Monday, February 1, but unfortunately, this company’s
share prices have more downside ahead.
JC Penny had a nice run from the bear market lows in March,
2009 to the rally highs in October 2009. Prices rose 59.6%
in only ten months. But since October the declines have
been vicious and steady, loping 22.8% off in three months.
JC Penny’s 1.5% rally on Monday was welcome relief,
but unfortunately the lows reached last week broke important
support levels at $25.46. JC Penny should still decline
to at least $22.68, another 10% lower than Monday’s
close.
The $22.68 level, when reached, will be critical support
for JC Penny. If share prices close lower expect to run
all the way to the $15.00 level in coming months.
A bullish reversal day could mark a bottom near the $22.68
level, but we would be wary of this stock and keep our
stop tight if a bullish position is then taken.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com)
which offers market timing strategies for S&P and
Nasdaq index fund traders, as well as bond, gold, small
cap, sector, ETF and stock trading strategies.
Kollar’s research has shown
that the financial markets are in tradable trends approximately
80 percent of the time. FibTimer strategies define trends
and trade them in both advancing and declining markets.
Caring nothing about what newscasters say or what the
latest economic indicator predicts, trends are where
the profits are, and that is where FibTimer is.
Go to previous Press
Releases & Trading Notes.
Note: These Press Releases are short term in nature. They may or may not reflect the same position as current subscriber reports which typically have longer time frames.
© Copyright 1996-2010, Market Timing Strategies, Inc., All Rights Reserved.
FibTimer reports may not be redistributed without permission. These Trading Notes however may be distributed without permission.
Disclaimer: The financial markets are risky. Investing is risky. Past performance
does not guarantee future performance. The foregoing has been prepared solely
for informational purposes and is not a solicitation, or an offer to buy or sell
any security. Opinions are based on historical research and data believed reliable,
but there is no guarantee that future results will be profitable. |
