Is it time to buy the discounted discount retailers? Nah! (November 06, 2012)

by DAN ROST TJX DLTR 
Good evening Dan Fitzpatrick here at StockMarketMentor and OptionMarketMentor.com In this video, look it’s election Tuesday so there’s probably going to be about nine of you watching this, so for those nine here’s the deal. We’re going to look at some of the discount retail stores. There’s been a lot of talk among various fundamentalists saying these are getting really cheap again. Well good for you, go ahead and buy them. You and me, we’re not going to do that. They just continue to walk along the lower Bollinger Band. I’ve talked about this before and I’ll continue to talk about it until this pattern stops. But right now this is a stock, frankly, that you want to short on any rallies, if this puppy gets up to about $59.00 sell it, fire off a short. The same thing with TJX ( $TJX TJX Companies Inc ), this is looking a little stronger at the 200-day moving average, I certainly wouldn’t be doing anything with this right now, no way, because it’s right at, you know it’s at a pretty big support line here, prior congestion over here; but if this starts trading below the 200-day moving average that’s a significant thing, you saw what happened Apple ( $AAPL Apple Inc ) when it started trading below the 200-day moving average, didn’t work out too well for the buyers. Similarly here with Dollar Tree ( $DLTR Dollar Tree, Inc ), we get this big, massive sell-off after some really nasty earnings, a very weak bounce, really weak bounce, volume wasn’t particularly heavy, not at all, and now the stocks drifting down to test this last low here of 38.45. So you know, look it’s what? Sixty cents or so above this last low, this is another one, if you’re buying this stock you’re buying it either out of hope, which is fine, or just stupidity, which is not so good. So what I want you to do is just stay away from these stocks for now, stay away from them. You’ll have a chance to buy them later, but my bet is that chance is going to come a lot later. Okay, that’s it for the Strategy Session. Happy election, make sure you go ahead and vote. Doesn’t matter who you vote for, but you know what? A lot of fine men and women have given their lives throughout the ages just so you can have a right to vote. So why don’t you go out there and do that, and make all of those folks, who gave their lives for us to vote, make them happy, okay?

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