Schaeffer's Trading Floor Blog

Checking Back on BEBE

by 5/18/2005 2:52 PM
Stocks quoted in this article:

As I perused the list below...Affymetrix (AFFX) looks interesting but I just checked on that stock earlier this month so I thought I would focus on bebe stores (BEBE), which I haven't discussed since early April...


Created with SuperCharts by Omega Research

As you can see, BEBE failed to hold at the upper support zone I noted last time and pulled back to the lower boundary, which was also the site of the 50-day moving average. The shares rallied off this area and have now moved back to challenge the former highs.

The curious aspect is that the shares are actually lower today amid the broad market rally. While I normally would view that as a concern, I am not so sure it is that easy. The scan I ran was designed, in part, to find stocks that are sort of marching to the beat of the own drum. In other words, here is a stock that is trading near its all-time high (with little in the way of over optimism) while the marker churns sideways...


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Index Check

by 5/18/2005 1:53 PM
Stocks quoted in this article:

The buying spikes appear to have slowed for a moment so I thought it would be a good time to check in on the index chart...

Overall I see a picture of momentum as the broad market indices push past the one percent line while a number of sectors tag the two percent line. Oil is back below 50 and, unlike yesterday, oil related stocks are not participating in today's run.


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Quick List

by 5/18/2005 12:54 PM
Stocks quoted in this article:

The bulls are keeping the pressure on as my alert for NYSE net ticks stays active and the major indices continue to advance to new highs for the session...

Given this strength, I thought it might be interesting to run a scan for stocks that still have some skepticism. I put together a quick query that looks for a low percent of buy ratings (based on data from Zacks) along with a decent level of short interest compared to the stock's float. I then sorted the results based on the performance of the last six months. Here are the top names from that scan...

A number these names (AFFX, BEBE, SGR, and KWK just to name a few) are one I have discussed in the past with varying success. I am going to dig into these stocks to see what stands out...


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Stocks quoted in this article:

At the open I mentioned a lack of follow-through and it appears I just needed to be a bit more patient. My alert for NYSE net ticks has been active as the major indices have pushed higher. Here are where the daily charts currently stand...

Created with SuperCharts by Omega Research

In a sign of strength, the SPX and DIA have pushed above last week's high and their 50-day moving averages. The RUT has yet to confirm this strength as it struggles to make it over that hurdle. Meanwhile, the QQQQ has been steadily ascending after overtaking its 50-day trendline and it is now challenging its early April highs.


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Stocks quoted in this article:

In regard to the focus on the CPI "core" number, which excludes the "volatile" food and energy components....

Mike says - "Hi, Nick--regarding the CPI: watch the talking heads (and mindless bulls) rave about the "core" number being good and ignoring the REAL number, which was higher than expected...Can any of these dolts find a consumer who can go a week WITHOUT buying food or energy? Puh-leeze..."

Meanwhile, Bob says - "As the market moves up on CPI data, does anybody ever wonder about the phrase "...excluding food and energy prices". Personally, I'm still eating and driving (not necessarily simultaneously). "

My response - When considering the comments of economists, a quote attributed to Jonathan Swift comes to mind...

    You cannot reason a person out of a position he did not reason himself into in the first place.

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