While I wish all trades could be as easy as the ZUMZ trade – which returned a quick 150% gain – that’s not always the case. We may have had some great success stories over the years, but recently losses take their toll, too.
I’m not concerned, though.
I’m still finding a great deal of potential movers in the market, despite recent sell-offs on Greek worries, fears of a Fed hike, a government shutdown… We also continue to hold all trades. Most will take some patience. AMBA – for example — came screaming back just as we hoped.
As for new trades, I just learned that BB&T upgraded Restoration Hardware (RH) to a buy rating with a $120 price target, implying 25% upside potential.
Apparently, the analyst is encouraged by the “introduction of Restoration Hardware Modern, which management describes as a carefully curated collection that combines the clean lines and minimalist aesthetic of modernism with the comfort and quality that defines the Restoration Hardware brand.”
But let’s be real here…
I can probably buy this “Modern” stuff at half the cost over at IKEA.
The excitement is over. There’s nothing to see here, in my opinion.
While there may be further strength down the line on potential revenue boost “if” there’s success, technical pivot points are pointing to a near-term sell-off. Not only is the stock challenging its upper Bollinger Band (2,20), it’s become a bit over-extended on RSI, MACD and Money Flow.
Betting on a near-term pullback to the 50-day moving average, consider buying to open the RH November 100 put up to $8.
Ian L. Cooper
Rapid Retirement System