Here is my take on $TJX – August 16, 2023
Dan Fitzpatrick with Fitz in Five. I want to look at TJX ( NYSE: TJX ), and here’s why: The company reported earnings and you can see what has happened with the stock.
It has printed are really, really nice gap. And it looks like this may be a really good kind of breakaway gap. It wouldn’t really be a breakaway gap, it would be more like a continuation since this stock has already moved, but that is just nomenclature. I want to look at the weekly chart here. You can see, this also looks pretty good, it kind of favors an ongoing uptrend, shall we say.
Other stocks in this sector; Walmart ( NYSE: WMT ) is doing really well. Target ( NYSE: TGT ), not so much. But really what I am looking at here is TJX ( NYSE: TJX ). So why is the relevant right now? Is this a buy? I would say no. Institutional buying has been rampant today, over twice the average volume. But it is not what you buy that matters, it is where you buy it from.
And right now, at this point, the stock is up too much. It is up 4.3 percent, and you could make a case, well, it’s not up that much. I’ve bought stocks that are up that much and they keep going. That’s fine, but the question is, if you are buying the stock right here, do you expect it to go up? Or might it actually come back down and kind of fill this gap a little bit?
In my view, the way the market is trading, with these indexes faltering below; now the Dow ( NYSE: DOW ) is still above but it is also drifting lower. If you look at the Nasdaq ( INDEXNASDAQ: .IXIC ), no. NDX ( NDEXNASDAQ: NDX ), no. MidCaps ( NYSEARCA: MDY ), no. IWM ( NYSEARCA: IWM ), no.
And so, what gives you the idea that this break out in TJX ( NYSE: TJX ) is just going to keep going? I don’t think it will. I think it is actually going to wind up coming back a little bit. My analysis here isn’t just specific to TJX ( NYSE: TJX ), though, if I owned it I would be selling it, I don’t so I’m not.
But it is not just specific to this. It is really kind of a comment on where we are in the market right now. I think when you get stocks that move up like this and you are in them, I think it is a really good time to be reducing your position, certainly not adding to them. You don’t want to add to a position unless it is doing really, really well and you know what the heck you are doing.
I think it is just really risky to do that at this point. Maybe I am boring, but I am just kind of more into account protection mode right now, waiting for the next train to jump on, as opposed to jumping in front of it.
Free Chart