The markets had a volatile day today moving higher before reversing and closing near the lows. It seems that traders are hesitant with the fed meeting looming mid week. I'm not sure that it means anything at this point, but smallcaps had a positive day outpacing the large caps and the Russell is only a few points from an all time high. It is still clear as mud right now, so I am taking it lightly. I did manage to find a few more bullish charts tonight.
Ross Stores, Inc. (Public, NASDAQ:ROST)
Classic pullback to breakout area for ROST. At this point you have to give bulls the benefit of the doubt which means ROST could head back to the previous high at a minimum.
Autodesk, Inc. (Public, NASDAQ:ADSK)
ADSK doesn't look that clean, but it retraced to a key fibonacci level (61.8%) and started to turn higher.
Target Corporation (Public, NYSE:TGT)
TGT looks almost exactly like the ROST chart pulling back to the breakout area. The rising 20sma may offer good support here.
Good Luck,
DT
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Hi Downtowntrader,
Firstly, congratulations. A very good blog and quiite insightful. Thanks for sharing your thoughts. I liked your analysis on ROSS and ADSK. Since I am primarly into the options trading, I am going to use your information with respect to Options :)
Keep it up and wish you all the best. In case, you would like to view my blog on options, here it is www.OptionPundit.net
Cheers and best wishes,
OptionPundit
Hi DT,
Just so you know, I have played TGT on the bull side but by playing what we call Bull Put spread. If TGT remains above 60 till Feb (or if I get out of the trade any time in between) the expected returns are 50/200 i.e. 25% in 3 wks time.
Cheers and profitable trading,
OptionPundit
Thanks for the kind comments optionpundit. I will check out your blog and good luck with TGT. I took a position in ROST this morning as well, so hopefully they both move in unison.
DT
Thanks DT. BTW TGT seems to be giving up all the gains from the morning. No worries, not sure if you bot options or stocks. For instance, I have bullish options, but in case it decides to fall below, I will open a bearish position as well that will conver my position into a fly. It won't then really matter as long as it remains in between 57.5 and 62.5. Cheers,
OP
DT, I thought I shall let you know. I have closed my credit spreads on TGT, made about 12% for roughly 1 week holding period.
Cheers,
OptionPundit
www.optionpundit.net