Thursday, May 18, 2006

Buy Sears SHLD, discussion on gaps

Trade

Buy SHLD on earnings news

Blowout earnings at Sears/Kmart. Same store sales down.

Sears had another gap open back in mid-March (3-month-chart). On that gap, the stock trading up about the width of the gap. That is the classic technical analysis, the move after the gap open will be equal to the gap up. Time will tell if this holds true with today's gap up open.

Current holdings:
ATK Alliant Tech (defense)
BAB British Air, hedged (airline) may be called Friday
PGR Progressive (auto insurance)
SHLD Sears/Kmart (retail)
WCG Wellpoint, hedged (healthcare benefits)

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