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Book Profits in Consumer Discretionary Stocks

Stocks in this article: XLY

Home Depot ($52.82) traded to a multi-year high of $54.28 on July 27. My quarterly value level is $48.35 with a weekly pivot at $53.03 and a quarterly risky level at $54.42.

Home Depot reported quarterly results before the market opened this morning that beat earnings-per-share estimates and raised its guidance for the full year above analyst expectations. Shares could find the strength to reach my quarterly risky level at $54.42, where investors should consider booking profits.

Lowe's (LOW) ($26.55) traded to a multi-year high of $32.29 on April 16. My annual value level is $25.06 with a weekly pivot at $25.77 and a quarterly risky level at $30.71.

Nike ($95.85) traded to an all time high at $114.81 on May 2. My weekly value level is $86.30 with a semiannual pivot at $92.33 and a monthly risky level at $106.32. Nike reported weaker-than-expected earnings on June 29, citing higher expenses and a restructuring charge, and its shares fell to a low of $85.10 that day.

Amazon.com ($232.44) traded to an all-time high of $246.71 on Oct. 14. My monthly value level is $227.60 with a semiannual risky level at $236.23.

Priceline (PCLN) ($562.00) traded to a multi-year high of $774.96 on April 10. My semiannual value level is $493.88 with a semiannual risky level at $615.29. On Aug. 7, Priceline gave a disappointing forecast for its third quarter that it blamed on the weak economy in Europe, and the stock traded as low as $553.43 on Aug. 9.

As of publication, the author had no positions in the stocks mentioned today, and no other conflicts.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at RSuttmeier@Gmail.com.
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