Ross Stores - ROST - close: 64.73 change: -1.12

Stop Loss: 66.55
Target(s): 60.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ROST is an off-price retailer. After a multi-quarter rally to new record highs the momentum has finally been exhausted. The stock started breaking down in September and now ROST has broken one of its major up trends.

I am suggesting bearish positions at the open tomorrow morning. We'll start with a stop loss at $66.55. Our target is $60.50. Odds are good the $60.00 level and the simple 200-dma could be support, at least temporary support.

- Suggested Positions -

buy the Oct $65 PUT (ROST1220v65) current ask $1.85

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 1.77 million
Listed on September 25, 2012