Bllue Horseshoe Stocks: JCP, RNBI & More

JC Penney Co., Inc. JCP

To kick off the week, we placed JCP on watch via Monday’s Extended Watchlist, so let’s finish things off by taking a look at what happened this week. We saw a consolidation down to 8.18 before the earnings release hit the wires yesterday, after which time the stock began to soar.

Already in pre-market trading today the stock has bounced back to hit a high of 10.15, so we’ll be anxious to see what can happen if the stock can break past this mark which also coincides with a recent swing high in November/December.

The 8-K filed contained both increased quarterly figures as well as guidance for 2014, and things seem to be headed in a positive direction overall, so we’ll continue to monitor JCP over the foreseeable future.


Rainbow International Corp. RNBI

Noticing a sizable increase in volume in RNBI during a routine scan on Wednesday prompted us to put it on yesterday morning’s watchlist, and it turned out to be a beneficial decision. We would see the stock spike from a low of .18 running to .24, giving traders a chance to bank up to 33% intraday.

A stock that was trading by appointment only prior to its big rise in volume this week, gaining this much ground on the chart demands the highest level of caution for those who’ve yet to exit their position.


Added Side Note:

We just want to take a minute to address a cautionary statement by influential hedge fund manager David Tepper yesterday, regarding his overall sentiments toward current market conditions. His warning to traders to avoid going too long at the moment, sent ripples through the investment community, and the overall markets saw a pullback (leading to a spike in the VIX/VXX).

Occurrences such as this can be used to profit no matter which way things go; depending on how the public reaction is going to play out, we will be looking to adjust our strategy by trading options on either the SPY, in the event that things turn back to the bullish side rather quickly, or the VIX, should we see a sustained downturn.


Extended Watchlist:
ZBB, DCIN, KGJI, OVRL, GALE, MSTX, CSTI