Wednesday, February 3, 2010

Breakout Watch

Yours truly is long a significant amount of DLTR (plus TJX and ROST in the same subgroup of discount retailers).

Dollar Tree is making a series of higher lows in the context of rising moving averages. Its relative strength is improving, its forward earnings estimates are rising, its valuation is quite reasonable to low based on historical P/E's.

A breakout could come any day. TJX could follow.

(Nothing here consitutes investment advice.)

Copyright (C) Long Lake LLC 2010

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