Stock of the Day
My SOTD today is GameStop (GME). The company reported lackluster earnings this morning, and offered tepid guidance for next quarter as well. But management also said they expect sales to surge later in the year from Sony's PSP handheld system and Microsoft's new Xbox 360 console. They also expect gross margins to improve.
The stock opened down, and traded lower briefly, but then it reversed higher and has been up as much as 10% intraday on surging volume. A break back above its overhead 50-day moving average would be an additional bullish development in the near-term.
My bearish reversal of the day is Citi Trends (CTRN). The hip-hop oriented retailer reported earnings yesterday. This stock also opened lower this morning before reversing higher. But it has since given up all of those gains and then some. This negative double-reversal is a bearish sign.
Although I am considering a long position in this stock at some point, I am going to remain on the sidelines for the time being.