This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Barnes & Noble to the Woodshed, Best Buy Beats Street

NEW YORK ( TheStreet) -- The retail-wholesale sector has been headlining earnings this week and this was the case for the retailers that reported quarterly results on Monday and Tuesday. All of the stocks profiled Monday in Home Depot, JC Penney, TJ Maxx Top Earnings News had buy ratings according to www.ValuEngine.com. After reporting earnings one stock had a moon-shot and was downgraded to hold. One stock was send to the woodshed and was upgraded to strong buy.

Traders and investors all but ignored the Nasdaq trading freeze on Thursday. It appears that the Nasdaq suffered a technical glitch that was called a connectivity issue that lasted for nearly three hours. Thursday's market rebound also ignored the ValuEngine valuation warning with 76.3% of all stocks overvalued 44.2% by 20% or more. The retail-wholesale sector is 24% overvalued and is one of nine sectors overvalued by more than 20%.

Today's closes are likely to keep the weekly chart profiles mixed for the five major equity averages. Dow Industrials and the S&P 500 are below their five-week modified moving averages at 15,306 and 1666.8 respectively. The Nasdaq, Dow transports and Russell 2000 are above their five-week MMAs at 3573, 6426 and 1026.03 respectively.

If we cannot confirm the early-August highs as cycle highs, new highs are likely in September. Here's the upside and downside in today's market pulse.

After Thursday's market strength the Nasdaq is down just 1.5% from its Aug. 5 multi-year high at 3694.18. The upside to my semiannual risky level at 3759 is just 3.3%. The downside to my annual value level at 2806 is 22.9%. This profile continues to justify having 50% of your investment dollars on the sidelines in cash.

Here is today's earnings scorecard with my buy-and-trade parameters:

Best Buy (BBY) ($35.20 vs. $30.37 on Aug. 16) beat EPS estimates by 20 cents a share earning 32 cents premarket on Tuesday. The stock closed Monday at $30.73 and gapped higher on Tuesday in a moon-shot to a multi-year high at $35.44 on Thursday. The upside price gap resulted in a downgrade to hold from buy according to ValuEngine. The stock is above my monthly pivot at $33.05, but the downgrade should be enough for buy-and-trade investors to consider booking profits.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,154.77 +123.63 0.73%
S&P 500 1,998.89 +14.76 0.74%
NASDAQ 4,544.59 +25.6880 0.57%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs