Buying a stock is perhaps the easiest of trades, but closing the position is often times most difficult. Today, shares of Bemis Company (NYSE:BMS) are trading higher by 1.5% to $49.17 and this stock has been on the move in recent sessions. First profiled as bullish on premierinvestor.net on October 26th, the stock looked like it was getting ready for another leg higher with a trade just above our rolled up retracement bracket at $44.99. Subscribers had to wait through 5 long trading sessions since, but have now seen this "chemical" stock (as classified by Dorsey Wright and Associates) make its move higher.
Bemis Co. Inc. Chart -
In last night's update, we think that shorter-term traders might want to sell into strength near the $49.95 level (if achieved) as the stock enters the upper end of our rolled up retracement. While the longer-term bullish price objective from the point/figure chart is bullish at $76, the past pattern of trader has been for the stock to enter a period of consolidation after a meaningful move higher like we've seen. Traders could also implement our "python approach" to squeezing profits from the trade and simply continue to move their stops up under the previous day's low and see if the stock can't achieve upper level of retracement near $52.50. Subscribers will note that at current levels, shares of Bemis (BMS) have gained 9% since October 26th, while the S&P 500 is up 1.08% since its October 26th close of 1,104.
Internets continue to hold gains
One group of stocks I think subscribers should continue to monitor are the Internets and the CBOE Internet Index (INX.X) here at $121.95, up 2.21% on the session. This is a group I feel gives hint to some still underlying bullishness and aggressiveness in the market.
The $123 level appears to be a sticking point with the group, but this makes some sense based on the technicals here. The April lows were right in this area and the index has been unable to close above the $123 level, since falling below on August 10th. Currently, I think this group is at a key "PIVOT" level. A move much above the 125 level would give hint that the market is rather aggressive and willing to take on more risk in a group that lacks earnings and is very dependent on economic stimulus and advertising rates.
CBOE Internet Index (INX.X) Chart -
In recent day's we've gotten more interesting in the Internet stocks. It started with Yahoo! Inc. in the "market monitor" on OptionInvetor.com at $11.50 and has spilled over to a recent profiling of AOL Time Warner (NYSE:AOL) at $35.20 on Wednesday. For those trading Internet's bullish I'm looking for a close above the $123-$125 levels to see the index potentially run to the $142 level near-term and also potentially signal a still rather aggressive "buy side" to the broader market.
Correlating Sentiment (attempt at humor)
In last night's market sentiment piece on OptionInvestor.com, Eric Utley pointed out a "study" conducted by The Single Male Fly Fisherman Association, which found men between the ages of 23 and 34 that fished more than they dated were 75% less likely to marry. They instead grow set in their ways and increasingly selfish with their time. Opting for the pursuit of wild trout instead of women.
I (Jeff Bailey) can correlate my life to said "study." I am now over the age of 34 by several years and can confirm such observations. It's amazing how historical observations in life as well as the market seem to hold true. This weekend it's off to the eastern plains of Colorado to partake in the flushing of pheasants, the symphony will have to wait.
I can neither confirm nor deny rumor among readership e-mail that the sales of fly rods are escalating in recent months. While demand for fly rods has been brisk, recent same store sales reports from fly fishing shops indicate that the female population (many married), are giving the aquatic cane poles to their still single daughters. Hallmark also has reported "themed" cards depicting "women are better of without men" also showing brisk sales.