J.C Penny Misses Same Store Sales Amid Strong Sector Results

Echo To All submits: General retail sales were good, as were department store sales. Herein lies the problem with J.C Penny (JCP). Same store sales for May at JCP were weak, yet on average, department store sales were relatively good. I do not like to see this as it is the opposite of what I was expecting to see from JCP. So much so that it made me sell my JCP holdings.

Currently, JCP is cheap, and the daily chart is oversold. But the weekly is telling me it will most likely see 75 (barring a positive catalyst).

Don't get me wrong; I still like the name, but I do not like the short-term negativity. Especially when that negativity is sparked by a fundamental event (missing same store sales while the sector was good) within the company’s business.

Due to valuation, now may not have been the right time to sell, as there may be a push to 79-80. But I wanted to free up some cash, and not be exposed to the potential drop the weekly chart indicates.

JCP 1-yr chart