This Test Can Still Save JCP Investors $1.48 Billion

J.C.Penney (JCP – NYSE)

By Bottarelli Research
Wednesday, May 16, 2012

I have to break into our series on the Dow Transports (TRAN) to report on the completely unnecessary billion dollar losses investors are taking on J.C.Penney (JCP – NYSE).

JCP just announced a terrible quarter, prompting the company to suspend their dividend in an attempt to resurrect their balance sheet. This news chopped JCP shares by 16.71% in a matter of hours.

But someone knew this was coming.

We asked Bottarelli Research Newsletter readers weeks ago to apply our Sell Stack test to their retail stocks. Anyone who performed this critical test to JCP would have seen that the stock had entered Charles Dow’s “Distribution Phase,” when the wise guys are unloading their shares just before a stock crashes.

Fortunately, this test can still save investors from billions in additional losses.

JCP 051612

Trading Tip: JCP’s technical chart indicates that the breakdown may not be over yet. JCP could fall to its next support level at $22.93.

Find out which three blue chip retailers have also failed the Sell Stack test, before they get crushed just like JCP.

Featured in this Report:

© 2013 CSR Group, LLC. All rights reserved. Published in USA.

Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.

CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.

Premium Subscriptions

For specific buy and sell recommendations, subscribe to a Bottarelli Research trading advisory service.


Sign up for the free
Bottarelli Research Chart of the Day and Newsletter