Here’s your trade on Bed Bath and Beyond (BBBY) — which I erroneously refer to as Best Buy (BBY) in this video. (June 26, 2014)
Today in this chart video let’s look at Bed Bath & Beyond ( NASDAQ:BBBY ). I saw some guy on CNBC, who is apparently a market technician, walking everybody through the entire chart finding meaning in every last move that this stock has made over the past umpteen whatever. The only thing that matters is this right here, what happened yesterday, what happened today, that’s it; this stuff does not have to be complicated, and technical analysis does not have to be technical. All you have to do is just look and see what the relative positions and levels of aggressiveness of buyers and sellers are.
Here’s what we know, we know that the stock has been trading in a really narrow range for a while, a $2.50 range for the month. Then today bad earnings, who knew, Bed Bath & Beyond ( NASDAQ:BBBY ) you can’t make money being Amazon’s show room, I’ve done it you have too. The stock gaps down, trades down as low as $55.00 basically on the nose; $55.00 is the line in the sand drawn by the bulls and the stock moves up; it’s not quite into the close yet; I’ve had to do this early.
So here’s the trade, it’s not much of a trade, but it’s a trade. The low is 54.96; you place your stop at 54.95, maybe a little bit looser, 54.92, so you’ve basically got less than a $2.00 risk. What you’re anticipating is, number one, any pull back here is likely to be bought, because you’re not going to see as much volume tomorrow as you do today and you probably, ultimately maybe get a little bit more of a breakout if the stock trades above $57.00. So right now this is the box for this stock, just like this was the box for the stock before. So it’s kind of like the same stock, different story, same strategy, trade the outsides of the box. When the stock moves up you buy, if the stock falls to a new low you sell, that’s pretty much the best I can do on Bed Bath & Beyond ( NASDAQ:BBBY ).
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