Rise of the Pawn Shops Featuring Wall Street Bean

• Posted by Greg Harmon
• on June 3rd, 2011

Sometimes fundamentals , macro events and technicals all line up. This seems to be the case with the Pawn Shops, or Pay Day Lenders as some call them. My friend Dan Miller over at Wall Street Bean put these on my radar several months ago and did an excellent piece yesterday about how the macro Washington environment is impacting them positively (link below) to go with his top Bean Screen Fundamental rankings. You should check it out. The technicals have been doing well lately also with World Acceptance Corp (ticker: $WRLD) making my Top Ten list last Sunday and EZCORP (ticker: $EZPW) .WRLD has since pulled back to the 50 day Simple Moving Average (SMA) area and printed a bearish candle Thursday. A hold here or at the 100 day SMA might be good entry points, and EZPW just looks good, with an updated chart posted last night still looking for a rise to 38 on a Measured Move (MM). But two lesser followed names Cash America International (ticker: $CSH) and First Cash Financial Services (ticker: $FCFS) are also looking good.

Cash America International, CSH

Cash America has been in a rising channel since September, bouncing off eh top of the channel earlier this week. Thursday it printed a long shadowed near doji candle that touched the mid point of the Bollinger bands and the middle of the channel. Look for a hold at the mid line or a pullback to the bottom rail as your entry points.

First Cash Financial Services, FCFS

First Cash Financial Services has also been in a rising channel. After printing a tweezer top this week it too breached the mid line of the Bollinger bands but then settled above it after printing a long shadowed doji. A hold over the mid line or the 50 day SMA at 38.36 would be a good entry or failing there the bottom rail.

With the Employment report coming out this morning wait for the market to settle into a direction before making your decision whether the time is right to execute.

The New Banks of America via Wall Street Bean

EZPW chart

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