Lattice Sets Up
Lattice Semiconductor broke out of a
handle Thursday, but the stock still is completing its cup, which means traders
may still have a chance to play a possible future base breakout for the
intermediate term.
The chipmaker said Thursday that its
board has approved a two-for-one split of the company’s common stock, payable to
shareholders of record as Sept. 20. The split will double the number of shares
outstanding to 122 million from 61 million.
What stocks should the
intermediate-term trader consider for shorting? Weak stocks in weak industries.
J.C. Penney
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PowerRating) may fit the bill. The stock is in a long-term downtrend
within a sector
(
$RLX.X |
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PowerRating) that has been squeezed by Fed rate tightening
and rising fuel costs (which diverts money from discretionary spending).
The stock sold off Thursday after the
No. 5 U.S. retailer reported a 4.5% decline in same-store sales at its
department stores in August and warned that the sales decline and
higher-than-expected promotional activity could depress third-quarter earnings.
Shares fell 1 3/16 to 14 on heavy
volume, and the stock closed bearishly in the lower half of the range. The stock
is due for a bounce. If it does, watch for signs of a stall and resumption of
the downward trend before going short.
All stocks are risky. On any new
trade, reduce your risk by limiting your position size and setting a protective
price stop where you will sell your new buy or cover your short to cap your
losses in the event the market turns against you.
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