BBY recently showed up on http://www.underperformingstocks.com and I'm looking for someone to write a few bullet points on its take off.if your up for it? Write me at firstname.lastname@example.org . I'm happy to link back to your own stock blog or site
i don't think there was enough panic buying/selling or volume for today to be the bottom
plus I think today pretty much signaled a market reversal. the NYSE bullish percent is at 76% (historically above 70% signaled a potential reversal). Everything has been dropping excluding inflation proof stocks (bare metals oil).
The only way I'm getting back in is if it goes below 32, or after some clarity post earnings announcement.
You said your self, this has set up a triple top triple bottom over the last year, and 27 is possible.
As much as I want to be long on this, and hate to miss out on the run up that I think is going to happen going into earnings. The market has me too nervous right now, even though I think bby is a steal.
I'm going to need a huge volume spike to justify getting in above 32 before earnings...
i would say that if you want to get long BBY you should DEFINITELY wait out this quarter
if they guide down or have a bad quarter you'll see March 2009 lows with a high degree of certainty. this stock can drop 15% in a day easy
what's more, you don't have a very high short interest built-up in BBY yet either (i.e. not a crowded short that will see a TON of short-covering if they DO BEAT earnings)
so net-net risk reward still favors shorts given what we now about holiday traffic, snow storms, and growth of online retailers this past Christmas. Hard to say Best Buy benefitted amidst those trends.
i repeat: Best Buy is an obsolete business model as we head towards 2015... they have ZERO competitive advantages and all the COST DISADVANTAGES to compete with Amazon, Ebay etc... their online strategy is so 2008, so 2000 & LATE...
I would have liked to see a spike in volume also but I'm guessing that the overall market's panic this week served that purpose. I think we may see a swift turnaround in the overall market as well. I got some sso near the close yesterday to take advantage.