Steven Madden, Ltd. - SHOO - close: 51.02 change: +0.28

Stop Loss: 48.75
Target(s): 54.75
Current Gain/Loss: + 0.0%
Time Frame: less than 2 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
You might naturally think that rising gasoline prices would put the brakes on consumers' ability to buy high-priced shoes from stores like Steven Madden. Yet the market doesn't think so. Otherwise, why are shares of SHOO hitting new all-time highs? After almost two weeks of consolidating sideways under resistance near $50.00 the stock is breaking out. There are less than two weeks until the earnings report (although the May 4th date is unconfirmed) and I suspect SHOO could see an old fashioned pre-earnings rally. The last couple of quarters the company raised guidance so investors could be expecting strong numbers here!

I would launch new positions now or wait for a dip near $50.00. I would not buy the options because the spreads are very wide and put us at a disadvantage. We want to keep our position size small to limit our risk. We do not want to hold over the earnings report.

(open Small Bullish Positions now)

Suggested Position: buy SHOO stock @ current levels

Annotated chart:

Entry on April 26 at $xx.xx
Earnings Date 05/04/11 (unconfirmed)
Average Daily Volume: 235 thousand
Listed on April 25th, 2011