Shoes Dropping at Dillards
- Posted by Greg Harmon
- on February 4th, 2013
A quick look at the stock chart of Dillards, $DDS, shows a bull flag on a longer uptrend after a minor pullback through January. Consolidation at the previous high in a tight range. Many would view this as a bullish set up. I could make an argument for it as well. But life is not always that easy. Look closer at the Relative Strength Index (RSI). it is holding in bullish territory but making a lower
high at present. And the Moving Average Convergence Divergence (MACD) signal line is rolling back at a much lower level, although the histogram is near the November highs. These too support more upside and could be just a squiggle in a line and not a pullback. It is not until you look at some of its peers, Nordstrom, $JWN, and Macy’s, $M that things get a little antsy. Nordstrom shows
a rollover beginning about two weeks ago after a trend higher and Macy’s also had a great trend higher until a pullback from its bull flag Monday. They do not have to drag Dillards lower but adding in the Performance Chart for the last 200 days shows that Dilliards has vastly outperformed these
two giants. By about 40%. My immediate thoughts turn to mean reversion. More attune to the shoe dropping at Dillards than a breakout. What do you see?
Join the Dragonfly Capital Views Premium Membership
Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Top Trade Ideas for the Week of December 22, 2014: The Best
- SPY Trends and Influencers December 20, 2014
- Macro Week in Review/Preview December 19, 2014
- Dragonfly Capital Views Performance Through December 2014 Expiry
- Charting An S&P 500 March Higher
- Premium Stuff
- Benzinga Morning Prep from December 18, 2014
- Getting a Rise in Dick’s for the Holidays
- Premium Earnings 12-18-14
- Checking Back on Crude Oil