Tuesday, September 11, 2007

Charts on Meritage Homes, JC Penney, and American Eagle

Countrywide needs more money reports the NY Post. Should we be a shocked at this. Maybe Bank America should average down since CFC was a bargain above 18 it must be a screaming bargain now at $16.50. I wish them luck, they will need it, just ask Nick Leeson if you doubt me.

Very nice looking descending triangle forming on Meritage (MTH chart above). A break of 15.50 spells more trouble.

The bear flag forming on JC Penney (JCP chart above) is compounded in significance due to its formation along a long standing trend line. Its breaking from here does not bode well for the retailers.

Yes I am aware the chairman of the company is buying stock hence the 'news follower bounce'. I would like to see the green trend line broken to the upside and we can start to talk turkey on this one. Until then the tape says down. Besides, I wonder if he bought the stock with his own bread or a low interest company guaranteed, forgivable loan. It wouldn't be the first time if so. Good trading to you all.

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