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General Electric trades $40.10

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This is perhaps the most "important" upside alert I've gotten this mornings as it relates to my earlier scenario that shares of General Electric (NYSE:GE) at $40.10 could be a major move coming in this stock, along with the Dow Industrials and set the current market environment on fire. In the "market monitor" we've alerted traders to this action and have profiled the GE December $40's (GELH) as bullish at $2.10

General Electric Chart -

Yesterday we set up a bullish trade in GE for a break above $40.10. We got that alert in the past 30-minutes. We also set up a trading scenario of how this stock could impact the Dow Industrials performance and investor psychology. If you can't pull the trigger on this one, you've got claws that are 5-inches long, fuzzy ears and a shiny black nose.

Please... trade within you limits and stated discipline. Yes, I think this is best bullish trade in market right now, but stay disciplined and don't overdue it.

Kohls shows strong comparables

Retailer Kohls (NYSE:KSS) reported strong October same store sales comparables today of +13.5%. For the quarter just ending November 3rd, the company said that comparable total sales increased 7.1%. This had me looking at a point/figure chart to see if the market felt this stock was worth our attention, and it sure got mine!

Kohls Corporation - $1 box

Wow! I can't remember seeing a chart that gave some many combinations of quadruple bottom and triple bottom sell signals. Now the stock is starting to flash triple top and spread quadruple top buy signals as buyers eat through overhead supply. I've tried to point out the various "major" sell and buy signals on the chart to help subscribers with their own research on stocks they're looking at. I've also highlighted the "low pole warning" that some newly created point-and-figure-tologists have wondered about. The most "common" low pole warning comes after a major decline (column of O's) that is reversed higher by more that half of the column of O's (see purple arrow). I've then extending that "high pole warning" to $59, which created the first buy signal off the bottom and gives us our current longer- term price objective of $94.

Now what we want to do is study the periods of where all those sell signals and now buy signals come from as it relates to relative strength. What was relative strength saying about shares of KSS as it related to the S&P 500? What is it saying now? Can I use this in other stocks I'm trading or starting to give "low pole warnings?"

I will have to cover relative strength chart later... lots going on in market today.

Jeff Bailey
Senior Market Technician
Option Investor

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