This article notes that Abercrombie & Fitch Co. (ANF: sentiment, chart, options) pleasantly surprised Wall Street with its same-store sales report for January. The retailer noted a 16% rise in net sales to $222.8 million, with same-stores sales increasing by a robust 8%. As a result, "investors rallied around the trendy retailer, " allowing ANF to notch a daily gain amid weakness in the rest of the equities market.

The author observes that Jefferies analyst Randal Konik attributed the positive January sales to gift cards and clearance sales, suggesting the solid reports might be a seasonal fluke. In a note to clients, Brean Murray Carret analyst Eric Beder explained that ANF's valuation might be reeling in some investors, but competitors American Eagle (AEO) and Aeropostale (ARO) will likely pose a fundamental threat as they continue to undercut ANF on price.

Already, ANF's post-January sales momentum is waning. The stock's brief pop was capped by resistance at its 50-day moving average, which has pressured the shares lower since early December 2009. Additionally, ANF is facing double-barreled resistance from its formerly supportive 10-week and 20-week trendlines.

However, downside could be limited during the short term. The stock hasn't yet breached support at its 10-month moving average or the round-number $30 level, either of which could provide a floor for the retail issue.

Plus, sentiment data suggests that there's plenty of pessimism priced into ANF already. The equity's Schaeffer's put/call open interest ratio (SOIR) stands at a put-heavy 2.19, in the 80th annual percentile. In other words, short-term option traders have been more bearishly aligned just 20% of the time during the past year. Meanwhile, short interest rose by 9.2% during the most recent reporting period to account for 12.2% of the equity's float.

Considering the stock's current perch between technical support and resistance, as well as the uneasy mood among investors, it seems likely that ANF is gearing up for a period of sideways consolidation during the near term.

This bullishly biased Barron's article claims that, despite a disappointing full-year forecast, Western Union (WU: sentiment, chart, options) has the potential to deliver in the long term. More specifically, earlier this week, the money transfer titan said revenue in 2009 fell 4%, and predicted little or no revenue growth in 2010. "There are still challenges in 2010," Chief Executive and President Christina Gold told investors, "but we have confidence in our business model and strategy and remain well positioned to gain share and grow business."

Apparently, the folks at Barron's agree, noting that WU trades at 13 times the high end of its 2010 earnings guidance – "well below prerecession multiples of 18 to 20 times earnings." Furthermore, the columnist states that, while the company still faces risks regarding the global economy and immigration reform, "Add lots of cash, profit growth, not to mention a cheap multiple, and this is one stock that should pay off for patient investors."

Technically speaking, it's been a rough week for the shares of WU, surrendering about 12% since skimming the $18.88 level on Monday. What's more, though it's still early, the equity is now poised to close the month beneath its 10-month moving average for the first time since April 2009.

Meanwhile, in the wake of the firm's earnings miss on Wednesday, once-bullish brokerage firms are jumping ship. Most notably, JPMorgan, Barclays, RBC Capital, and Citigroup all trimmed their respective price targets on the stock, while Goldman Sachs removed the security from its coveted Americas' buy list after a downgrade to "neutral."

However, there's still an ample amount of analysts on WU's bullish bandwagon – which could point to more potential converts to the bears' lair. According to Zacks, the stock has earned a whopping 13 "strong buys" and four "buy" ratings, compared to seven tepid "holds" and only a single "sell." Plus, the consensus 12-month price target on the equity stands at $22.66 – more than 6 points above the stock's closing price on Thursday, and representing a 2-point premium to WU's 52-week high.

Should more analysts abandon the bullpen, another round of downgrades and/or price-target reductions could exacerbate WU's recent journey into the red.

This Fortune article takes a closer look at Southwest Airlines Co. (LUV: sentiment, chart, options), which is beating the air-travel slump. The biggest U.S. discount airline surprised investors in January by posting earnings of $74 million, with lower jet fuel prices offsetting cheaper ticket prices. In addition, Southwest's stock has returned 50% in the past year, beating both the rise in the S&P 500 Index (SPX) and global airlines' gain.

Analysts are mixed on the shares. Jim Corridore, equity analyst for Standard & Poor's, contends, "Southwest can grow traffic when the rest of the U.S. airline industry is hunkered down and trying to survive. Domestic and leisure travel -- Southwest's sweet spot -- will recover faster in 2010 than international and business travel." Furthermore, "In 2009, Southwest moved unprofitable routes to better markets like Denver and Chicago, where they are now seeing strong demand."

However, Helane Becker, analyst for Jesup & Lamont, believes, "Southwest isn't adding new capacity this year, yet the stock is trading at almost 30 times our 2010 earnings estimate -- and that's assuming fairly aggressive profits since our estimate is above other analysts'. We just feel airlines can sell at 8 to 10 times earnings." To add to the company's headwinds, the firm is overhauling its computer system to handle international travel and, like other airlines, paying higher airport costs because travel is down.

Technically speaking, LUV has been in a strong uptrend along its 10-week and 20-week moving averages since early April 2009, and the equity has gained more than 1% since the beginning of 2010.

However, pessimism is on the rise toward the shares. The International Securities Exchange (ISE) has seen an increase in put trading. The 10-day put/call volume ratio rests at 0.93, which is higher than 78% of all those taken during the past year. In addition, the ISE/Chicago Board Options Exchange (CBOE) 10-day put/call volume ratio comes in at 1.8, as put volume nearly doubles call volume. This ratio is higher than 98% of all those taken during the past year, pointing to a rising skepticism.

Wall Street also has its doubts, as 11 of the 16 analysts following the firm rate it a "hold" or worse. Any upgrades from this group could send the bears scrambling for the bulls' camp, creating a wave of buying pressure.

Standard & Poor's announced late on Friday that trendy clothier Urban Outfitters Inc. (URBN: sentiment, chart, options) would replace Affiliated Computer Services (ACS) on the S&P 500 Index (SPX), this Barron's article reports. What's more, URBN was upgraded earlier on Friday by FBR Capital Markets. As of Friday's close, the shares had logged a gain of 108% during the prior 12 months.

That said, the author downplays these gains, saying that much of URBN's rally took place last spring and summer, and that most of the stock's gains since then have been muted. Additionally, Barron's isn't too fond of the weaker-than-expected December consumer spending report, which showed a meager rise of 0.2%.

"Our belief based upon some of the traffic trends we saw in January is that we're going to be very choppy in the first three-to-six months of the year," says Betty Chen, an analyst for Wedbush Securities. "Partially because if you look at unemployment and housing it's still very volatile. And when we speak to consumers they also remain very cautious on spending."

Finally, the author takes aim at URBN's valuation. "We envision greater downside risk. Shares could sell off later this week, for one, given increasingly strong expectations for the company's fourth-quarter comparable-store sales report due Thursday," says Barron's. And if the company's core numbers remain weak, URBN could have a hard time remaining at current levels, the magazine says.

Technically speaking, URBN has been a laggard recently, with the shares underperforming the S&P 500 Index (SPX) by nearly 6% on a relative-strength basis during the past 60 trading days. What's more, the equity's bout of poor price action has it trading below former support at its 10-week and 20-week moving averages. That said, URBN has rebounded from round-number support in the 30 region to reclaim its 20-week trendline in today's trading. This development could be a bullish sign for the security.

What's more, the stock's sentiment backdrop could also provide lift for the shares. Specifically, it would seem that investor expectations are pretty low heading into the sales report. URBN's 10-day International Securities Exchange (ISE) and Chicago Board Options Exchange (CBOE) put/call volume ratio of 3.04 indicates that puts bought to open have more than tripled calls purchased during the prior two weeks. This ratio also ranks above 86% of those taken in the past year, meaning that options traders have rarely snatched up puts at a faster rate.

Meanwhile, nearly 8% of URBN's float remains sold short, despite the number of shorted shares plunging by 9.5% during the most recent reporting period. This leaves a substantial number of bears vulnerable to a potential short-squeeze situation, should the company manage to defy the odds and impress investors this Thursday.

The stock's sentiment outlook is not without its pitfalls, however. Currently, 19 of the 28 brokerage firms following the shares rate them a "buy" or better. While some of this optimism is warranted, given the stock's 52-week gain of 102%, a poor showing in the earnings confessional could prompt some of these bulls to cut their ratings on the equity.

This article raises concerns about the valuation of Ford Motor Company (F: sentiment, chart, options), noting that the automaker must "prove its rebound has staying power" to justify the stock's current price. With F trading near $11 per share, the authors conclude that the market is valuing Ford's auto business at $52 billion. "Investors are being optimistic," says this skeptical article, noting that the company's assets are worth roughly $39 billion.

However, continue the authors, it's "not beyond the realm of possibility" that Ford could live up to these high expectations; a rebound in vehicle sales could help the auto issue's case, as could continued benefits from cost-cutting. Nevertheless, "if shareholders aren't convinced this Motown manufacturer's rebound is here to stay, the fivefold jump in its stock in the last 12 months looks overdone."

Ford shares have certainly enjoyed a rapid rise during the past 52 weeks, surging more than 485% during this time frame. The stock has enjoyed the unflagging support of its 10-week and 20-week moving averages since March 2009, and it's now trading near five-year highs.

In light of this stellar price action -- as well as Ford's ability to dodge the Chapter 11 virus that plagued its fellow American automakers last year -- it might be reasonable to expect some degree of optimism among investors. However, it doesn't seem that the market is nearly as upbeat as this article suggests.

For starters, short interest spiked by 37.6% during the past month, and now accounts for more than 6% of the stock's float. Plus, Ford's 10-day International Securities Exchange (ISE) put/call volume ratio stands at 1.31, in the 94th annual percentile -- just six percentage points from a bearish peak. In other words, both stock and option traders seem to be expecting a steep pullback from the stock.

Valuation-related arguments aside, there seems to be no shortage of negative sentiment surrounding F, despite its impressive price action. If the shares continue to trek higher, these bears will eventually be forced to capitulate, providing the equity with a fresh wave of buying power.

While the General Electric Co. (GE: sentiment, chart, options) topped Wall Street quarterly earnings estimates last week, many analysts feel the company is no longer a good investment. Specifically, Dilip Sarangan, research analyst at Frost & Sullivan, feels that traders should avoid the Dow Jones Industrial Average (DJIA) component, according to a recent interview with CNBC.com.

"Traditionally, it used to be a good investment because of the dividends. But now with what's been going on in the past 18 months or so, it's no longer a good investment, nor is it going to be one of the stocks that will grow," Sarangan told CNBC. "Compared to a lot of the other Dow components, they're definitely stinking it up."

Sarangan is not the only analyst betting against GE, as 10 of the 18 brokerage firms following the shares rate them a "hold" or worse, according to Zacks. However, the negativity surrounding the security ends with the analyst community. Specifically, options traders' preference for calls over puts has allowed GE's Schaeffer's put/call open interest ratio (SOIR) to plunge from an annual high of 1.72 on Sept. 18, 2009, to its current perch at 0.94 in the 29th percentile.

What's more, data from the International Securities Exchange (ISE) and Chicago Board Options Exchange (CBOE) support this shift toward optimism among speculative investors. Currently, GE's 10-day ISE/CBOE call/put volume ratio of 2.10 indicates that calls bought to open have more than doubled puts purchased during the prior two weeks. This ratio also ranks above three quarters of all such readings taken during the past year, meaning that GE options traders have rarely scooped up calls at a faster pace in the prior 52 weeks.

Meanwhile, short sellers have abandoned ship, with the number of GE shares sold short plunging by more than 22% during the past month. As a result, less than 1% of the stock's float remains sold short. This pittance of shorted shares provides little in the way of short-covering support for the equity.

Technically speaking, GE deserves some of this bullish attention, as the shares have rallied more than 33% during the past year. However, the stock is currently trapped between staunch long-term resistance in the 17-17.50 area - site of the stock's September high - and support at its 10-week and 20-week moving averages. These trendlines have helped usher GE steadily higher since late March, and could keep the stock aloft should more turbulence shake the market. As a result, we could see the security trend sideways for the time being, ultimately testing the resolve of lingering bullish investors.

This article takes note of the cautious attitude displayed by Continental Airlines (CAL: sentiment, chart, options) CEO Jeffery Smisek in the wake of the company's fourth-quarter report. Although the airline swung to a quarterly profit for the first time in two years, Smisek put a damper on the market's enthusiasm by warning that Continental is "a long way from being out of the woods."

As the author observes, Smisek's cautious tone might have frustrated investors -- but the CEO was likely right on the money with his commentary. "A solid fourth quarter does not automatically mean all is right with the industry in 2010," notes this skeptical article, citing anemic margins for the airline sector. In fact, the author believes that the CEO's warning "was exactly the kind of reminder needed" to keep investors' expectations in line with reality.

Judging by sentiment data, it actually seems that there's no shortage of skepticism priced into CAL shares. On the options front, CAL boasts a 10-day International Securities Exchange (ISE) put/call volume ratio of 1.47, as traders have bought to open more bearish bets than bullish during the past two weeks. This ratio ranks in the 92nd annual percentile, indicating that CAL's put options have rarely been in greater demand over calls.

Likewise, the equity's Schaeffer's put/call open interest ratio (SOIR) checks in at 0.74, in the pessimistically skewed 83rd annual percentile. Plus, short interest rose by 7.6% during the most recent reporting period, and these pessimistic positions now account for 13.7% of the security's float. With both stock and option players adopting a downbeat stance toward CAL in recent weeks, it hardly seems that expectations have become too frothy.

Plus, the stock's technical performance looks solid -- CAL has climbed consistently higher along the support of its 10-day and 20-day moving averages since early November 2009. While there are still some lingering fundamental concerns for the sector, it seems as though the equity could actually reap the benefits of low expectations during the near term.

This optimistic Barron's article predicts that, "Amid signs that the tide of losses has turned for casino operators, the companies that provide the industry with slot machines … have a shot at gaining leverage to a recovery in industry spending." More specifically, the author says that Bally Technologies Inc. (BYI: sentiment, chart, options) could benefit the most in the coming year, citing analysts' opinion that the firm has the greatest earnings leverage among its sector peers.

Furthermore, the columnist notes that Las Vegas casino operators posted their first monthly revenue increase in nearly two years in November, snapping a streak of 22 straight monthly declines. With that in mind, plus the company's new management team, Bally's "significant exposure to what's called the ‘systems' business," and an appealing price-to-earnings ratio, some analysts believe now is the time to jump on BYI's bullish bandwagon.

Technically speaking, it's no secret that BYI has been impressive on the charts, virtually tripling since grazing the $14 level in mid-March 2009. However, guided higher along its 10-week and 20-week moving averages, the stock is now approaching a critical crossroads in the overhead $48-$50 neighborhood. This region acted as a technical barrier for the shares in late 2007 and early 2008, and could once again halt the security's incline.

However, the stock's sentiment backdrop indicates that most of the Street has already flocked to the bullpen. The equity's Schaeffer's put/call open interest ratio (SOIR) of 0.62 implies that calls readily outnumber their put rivals among options slated to expire within three months. What's more, this reading registers in the 40th annual percentile, indicating that near-term traders are more optimistically aligned than usual toward BYI.

On that same note, the majority of the brokerage bunch is also devoted to the bullish camp. According to Zacks, BYI has earned a whopping seven "strong buys" and one "buy" rating, compared to just four lukewarm "holds" and nary a "sell" in sight.

Should the overhead $48-$50 area once again halt BYI's upward trajectory, or should analysts' expected recovery of the casino industry stall, these bulls could abandon ship. A reversal in sentiment in the options arena or a wave of downgrades could spark selling pressure on the stock.

The latest Barron's article on Intel Corp. (INTC: sentiment, chart, options) takes a bullish look at the chip stock following its earnings report last Thursday, advising investors to buy the shares on their pullback. On Thursday, the firm posted better-than-expected fourth-quarter earnings and a robust outlook for the year ahead. Reduced manufacturing costs, along with higher-than expected revenues, boosted the results. INTC also boasts a forward P/E ratio of just 13.1 -- an "unsustainably low trough," according to Wedbush Morgan analyst Patrick Wang. Furthermore, recession-related losses are moderating, and margins expanded in the latest quarter. The company's 2.7% dividend yield is supported by $12.9 billion in cash on its balance sheet, with just $2.4 billion in debt.

Analysts remain optimistic as well. "While Intel shares have underperformed the [Dow Jones Semiconductor Index] recently, we see little reason given the strength of the PC market, share gain, and what we view as good valuations, and we believe the strength of the PC market and the conservative guidance combined with Intel lowering Street expectations on margins and likely leverage for 2010 should provide tailwinds," wrote ThinkEquity analyst Vijay Rakesh, who upgraded Intel from "hold" to "buy on the news."

Meanwhile, Canaccord Adams analyst Bobby Burleson wrote in a research note, "We believe the first quarter is off to a strong start based on increasing forecasts at notebook original design manufacturers who see strong demand for Intel's new platforms."

Taking a closer look at the stock's sentiment backdrop, we find that options players are extremely optimistic toward the shares. The Schaeffer's put/call open interest ratio (SOIR) of 0.56 is at an annual low, indicating that short-term options players have not been more optimistically aligned toward INTC at any other time during the past year. Furthermore, the International Securities Exchange (ISE)/Chicago Board Options Exchange (CBOE) 10-day call/put volume ratio sits at 3.47, as call volume more than tripled put volume during the past two trading weeks.

As noted above, Wall Street is also smitten. According to Zacks, the stock has earned 30 "buy" ratings, 11 "holds," and just two "sells."

Technically speaking, this surge in optimism comes as the shares find themselves locked in a sideways channel under resistance in the 21-22 region. Additional resistance resides overhead in the form of the equity's 80-month moving averages, which could hinder rally attempts. Should the stock fail to break out of its trading range, the bulls could begin to unload their long positions, creating fresh selling pressure on the stock.

This article examines how Visa Inc. (V: sentiment, chart, options) has used debit card fees to boost its bottom line and build its market share. By charging lofty fees for signature debit transactions, and then turning those fees over to banks as an incentive to issue additional Visa cards, the credit card company has essentially created a sector-leading brand at the expense of merchants and consumers.

However, William M. Sheedy, president of the Americas at Visa, argues that it's simply "a perspective problem." The company believes that an increasing shift toward plastic over paper payments has translated to greater convenience for consumers and higher sales for merchants.

In any case, this article notes that Visa's "[business] model has investors swooning," with the equity hovering near an annual high. Plus, despite lawsuits from merchants, Visa has continued to raise its rates for debit transactions even higher in recent years.

This New York Times piece hailing Visa's seemingly infallible business model comes amid an outpouring of love for the stock on Wall Street. Since the beginning of 2010, V has racked up no fewer than four price-target increases from various brokerage firms, and at least one new "overweight" rating from Morgan Stanley. All told, 24 out of 29 analysts maintain a "strong buy" or "buy" recommendation on the security.

This enthusiasm is warranted by V's recent price action, with the shares climbing to a 52-week gain of more than 77% along the support of their 10-week and 20-week moving averages. However, it's worth noting that the bullish tide continues to rise, even though the stock has lost quite a bit of positive momentum since completing a double-top formation at the $90 level in mid-December 2009.

While it's too soon to determine whether the equity's intermediate-term uptrend has broken down completely or simply stalled out, contrarians will want to keep an eye on V in the coming weeks. With hopes running so high for the credit card company, a continued bout of weakness on the charts could prompt a substantial unwinding of optimistic sentiment.