Wednesday, September 12, 2007

Disco Biscuit Retailer Leading the way? (Buckle In. BKE)

There is little doubt that this is a difficult market. I should be in cash, just waiting for things to even out. Since that is boring I'm just going to hedge my new long TD Sequential long positions.

The retailers have been getting hammered. Stocks like Chicos and the like can't seem to find a bottom, which is why I'm amazed that Buckle Inc is still doing ok. I hate this store. They used to sell some cool stuff, but now it seems they only want to sell to the clubbing disco-biscuit taking type. It looks to me that BKE is near the top here and would present a low-risk short. It also seems to be forming the right side of a head and shoulders pattern. Notice how there is resistance at 36.50, a breakout above it, and then a failure. The stock is trying to get back above that same resistance level but seems to be losing steam.

I'm going to short it on the next bounce.

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