Thursday, February 12, 2009
KSS - paydirt!
I have been patiently waiting for Kohl's corp (ticker KSS) to break down out of its bearish wedge while holding April puts against it. This morning, it happened. The downward move should be fast and furious over the next 1-2 weeks, though I will be taking profits well before the bottom of the move once my profit objective is met.
Gold and gold stocks continue to hang tough and catch investor attention. Gold is starting to be mentioned more and more frequently in the mainstream. I am holding my miner puts (GFI, NEM and PAAS) as I smell a bull trap and still believe a plunge is imminent. I tried going short the gold price Tuesday at the close using a double inverse ETF DZZ and was already stopped out at a small loss (used a tight stop loss on this trade) when I woke up Wednesday morning.
The message to me is clear: gold and gold stocks are in significant bull markets (unlike all other stock sectors) and you need to buy some (more?) of both on the next steep correction! I think gold stocks are going to explode after the next correction and I intend to be along for the ride (after these stocks make me some money on the short side, of course).