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Frank started market timing in 1982 when the Federal Reserve cut interest rates and sparked the 1980’s bull rally. Realizing that this rally could have been forecasted, he began to search for indicators which had similar forecasting ability. Within a year, his first newsletter was launched,... More
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  • The Unlikely Rally For J C Penny Inc (NYSE: JCP)  0 comments
    Sep 11, 2012 3:14 PM | about stocks: JCP

    September 12, 2012 (By Frank Kollar)

    The news for J C Penny Inc (NYSE: JCP) has been terrible. Sales tumbled more than 20% during the first half of this year.

    But on August 10th, the day J C Penney reported a bigger-than-expected loss and withdrew its earnings guidance for the year, prompting Moody's to lower its debt rating deeper into junk territory, share prices rose 6%.

    Our stock timing strategy took a long position in J C Penney on August 22nd and it inspired more than a few emails from subscribers.


    Chart Courtesy of StockCharts.com

    But we do not look at stock fundamentals. If we did J C Penney would not have been recommended. We identify and trade trends and J C Penney had begun what we identified as a new bullish trend.

    Since our entry, J C Penney is up over 20% and we see more gains ahead.

    J C Penney is approaching its 61.8% retracement resistance level at $30.09. A decisive close above and we will be looking for shares to climb to and test the $36.00 level.

    The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy does have a position in J C Penney.

    Disclosure: I am long JCP.

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