maybe they are spending their cash on expensive jeans and NOT on cheap BKE shares? ps-I'm not negative about BKE, the FA looks fine on the company. But the last few days we see housing down, consumer down, gdp was rigged up on fed programs (clunkers, etc). Happy days are not here again in some big broad healthy way.
It's not just rich kids buying. BKE is more affordable than Abercrombie, but has a better product lineup. Consumer electronics are doing great, so mid-to-higher end retail will likely follow since they are both discretionary. Conditions have improved enough that people will spend a couple hundred bucks occasionally on stuff they want, but avoid big ticket items that come with payments.
by the way, did you know the demo for bke is 12-24 yr olds? did you know that the unemployment rate for people with advanced degrees (i.e., masters+) is only 4%? Very likely the parents of the core consumer is not participating in the recession too terribly much. that cash for $150 jeans program actually exists...it's called kids asking their wealthy parents for $$.
just looked at a 1 yr slow stochastic...well below the 20 line meaning very oversold. yes, it was equally overbought in early Oct. all indications are that it will reverse...which makes sense given how hard it is to borrow to short.
i was watching cramer last night and he mentioned something interesting. he was talking about the hedge and mutual fund managers who are trying to make their numbers by the end of october since that is when many of them end their calendar year. so, they're going to pump up their holdings by manipulation until thursday afternoon and then play defense. cramer was talking about going long but he just as easily could have been talking about going short. i'll be he's mostly right and this continues through thurs and then maintains the level on friday.
the mm's need this back down in the 20's so they can cover or show less of a paper loss. but next week we'll likely get a rally. selling out over the next few days is dangerous because when they send it back up it's going up quick. probably a good idea to be averaging in bit by bit.
There isn't much support here, but the fundamentals don't support the drop either. The day traders and panic sellers can fight it out for a while. It's only a question of time before the price reflects the value. I don't mind setting back for my due profits.