A Technical Look at Sears Holdings; Patience

By Andrew Nyquist
Earlier today, I wrote about Sears Holdings (SHLD) and the announcement that the company would be closing more Sears and Kmart retail stores.  This announcement sunk the stock over 27% and has many forecasting the imminent demise of the retailer.  This may very well be true, but either way, I wanted to take a moment to remove emotional conviction by taking a quick look at the technicals.

Well, it’s not pretty longer term.  The stock is on a bar 7 of a TD DeMark weekly buy setup, meaning this week’s low will need to be exceeded next week or the following week to perfect the buy setup.  This would likely be followed by a bout of relative strength (1 to 4 weeks) but, quite frankly, it doesn’t say much for the long term prospects of Sears.  What it does say, however, is that the falling knife should find some support in the next couple weeks.  And may be tradable for those with ice in their veins.

Happy Investing.

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No positions in any of the securities mentioned at time of publication.

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of his employer or any other person or entity.