Wednesday, August 31, 2005
Sears holdings has dropped quite a bit more than I had expected. Apparently the combination of high gasoline prices and worries about a slowing economy have hurt the entire retail sector.
Even so, this is a bull market and I think the economy will be even stronger in 2006 than it is now. I think that SHLD will move above its 162 top but will probably not reach my original 252 target because it has started to underperform the market averages a bit.
The low of the current drop from 161 will occur near the bottom of the current box near 130 and SHLD will rally to new highs from there.