NEW YORK (TheStreet) -- Cyber Monday sales were slower than expected, according to IBM (IBM) , and some analysts are saying that shoppers aren't turning out in droves on Black Friday and Cyber Monday the way they used to. These analysts say consumers are instead stretching out holiday shopping as a month-long celebration.
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Here's how to trade these stocks, all three of which have seen declines this year.
Abercrombie & Fitch ($28.15) reports quarterly earnings before the opening bell on Wednesday, and analysts expect the retailer to earn 41 cents a share. The retailer began 2014 with shares having traded below their 200-week simple moving average since August 2013. The stock is down 15% so far this year and traded to a multiyear intraday low at $28.11 on Monday, well below its 50-day and 200-day simple moving averages at $32.83 and $37.89, respectively.
As an indication of volatility, Abercrombie traded as high as $45.50 on Aug. 27, then gapped lower after its last earnings report, on Aug. 28. From this high to Monday's low the stock is down 38%.
The weekly chart is negative but oversold with its key weekly moving average at $31.00. Investors looking to buy this stock should consider using a buy-stop above this key moving average.
Aeropostale ($3.16) reports quarterly earnings after the closing bell on Wednesday, and analysts expect the retailer to report a loss of 45 cents a share. The stock has had a tough few years, staying below its 200-week simple moving average since May 2012 with this moving average now at $12.74. The retailer has been below its 200-day simple moving average since August 2013 with this moving average now at $4.10. This stock has become an "option on survival," a bet that Aeropostale can stay in business.
The stock is down 65% year to date but is just above its 50-day simple moving average at $3.11, which supports the possibility of a rebound to the 200-day simple moving average. Investors should enter a "good 'til canceled" limit order to buy weakness to a key technical level at $2.90 and consider a buy as an "option on survival."