JCP-JCPenny Earnings Report | Stocks to Trade 5-12-17



Why JCPenney Earnings Are Going to Be Ugly (JCP)

The first quarter isn’t a make-or-break one, but JCP stock still could use a strong showing on Friday

The chatter suggesting J C Penney Company Inc (NYSE:JCP) was en route to a turnaround a couple years ago seemed credible. 2015’s top line was slightly bigger than the prior year’s, and the company’s losses appeared to be shrinking. Perhaps most important, JCP stock was making forward progress more of than not after a big-time tumble in 2013.

What’s happened in the meantime, however, has been less than impressive. Sales growth has stalled, and though the bottom line has improved, consistent profits remain elusive. Most alarming of all, investors have given up hope. JCP stock has fallen 47% since December of last year, reaching new multiyear lows in the process.

Earnings Preview: Can J.C. Penney Avoid a Sears-Like Meltdown?

J.C. Penney had a rough year in 2016, causing its stock price to collapse. Investors are hoping it got off to a better start in 2017.

Several big department-store chains will report their first-quarter results later this week. Of that group, the stakes are highest for J.C. Penney (NYSE:JCP), whose stock has been trading near multiyear lows recently, as the company’s turnaround progress has slowed.

At least one of J.C. Penney’s key rivals in the mid-price department-store segment wiped out last quarter. Sears Holdings (NASDAQ:SHLD) warned investors last month that its sales have plunged in the first few months of 2017. Did J.C. Penney manage to avoid a similar fate?

JCP JCPenny Before Earnings 5-12-17

JCP JCPenny Before Earnings 5-12-17

Today’s Trading Lesson…

I can read your mind today. You are probably having a hard time finding stocks to earn a consistent income.

Here is a secret that helps, immediately. When you create a watch list of stocks, make sure you have “change from the close,” AND change from the open.”

Only trade stock where both of those are on the same side. Throw in a little order flow, and momentum and you have solid list of stocks with a higher trade expectation.

Watch this video for a detailed explanation.


On the Tape Today | 5-12-17

$UNP 5-12-17

$UNP 5-12-17

UNP Union Pacific traded into a bullish U-Turn and close at the $110 resistance. Looking to be a buyer and see a test of the previous $115 level as a target. Game planning a $110.50 buy-stop. Setting a stop loss on a close below $109.25.

$COF 5-12-17

$COF 5-12-17

COF Capital One Financial knocking for a third time on the $80 support level. Larry Williams used to say "3 knocks and open the door..." Looking for support to break today, and planning a $79.40 sell-stop for the entry of 2/3 of my position. Expecting a pause in the $75 area, then adding the remaining 1/3 with a target of $72 to cover the short sale. Stop loss on a close above $81.


SPY ETF Chart 5-12-17

SPY ETF Chart 5-12-17

Tape Reading the SPY ETF

$SPY traded into a “hammer” candlestick, which is bullish, but we need to get a close above this daily range to hold trades longer.

The fact that all three major indices reversed and closed near the high gives hope. I am still in cash flow mode. Too many years of trading have taught me to preserve precious capital unless the tape is obvious. This price action is anything but obvious.

Always remember you should only accept risk if the reward potential is there. Which means the odds of your profit target being reached are much higher than your stop loss being hit.

If you are looking for some stocks in play… plenty of retail stocks with earnings this week and SNAP to put in a watch list.

Stock Market Today: Heatmap of the S&P 500

SP 500 Heatmap 5-12-17

SP 500 Heatmap 5-12-17

Stocks to Trade 5-12-17 | Friday Edition

Short-Term Momentum

Bullish Momentum: NVDA, MYL, SRPT

Bearish Momentum: trip

Long-Term Order Flow


Bearish Order Flow: car, x, slb, tsco, eqt, esrx, hal, oxy, ibm, clr, dfs, akam, slca

2X Normal Volume: NVDA, KSS, YELP, JWN, CTRP, CAR, EA

Inside Days: x, t, kmi, etp, wmb, ea, nflx, pypl, atvi, cit, peg, pe, ba, vlo, cl, hig, bhp, mur, twlo, cag, hrb, fnsr, clr, ffiv

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