Coldwater Creek (CWTR)

Company

"Coldwater Creek is a multi-channel retailer of women's apparel, jewelry, fashion and home accessories, and gift items. We are committed to creating a unique and personal brand experience that reflects our customer's lifestyle, recognizes her individuality, and delights her with meaning and inspiration. Our merchandise assortment reflects an elegant yet relaxed, natural lifestyle and is available through our retail stores, web site and catalogs. Our mission is to become the premier specialty retailer for women 35 years of age and older in the United States by offering our customers a compelling merchandise assortment with superior customer service." (company website)

cwtr(3-1)
CWTR 4-month chart
cwtr(3-1)_1yr
CWTR 1-year chart

Buy

Coldwater Creek bottomed out in November 2008, then made a second, but higher, bottom in February. Since then it has risen steadily and sharply. It is now making a third test of the $8 level on three consecutive days of high volume. Earnings were as Expected, so I am betting that a breakout is in the offing.

  • Percentage price oscillator (PPO) — just crossed above the signal line
  • Volume — three days of higher than normal volume

Based on technical analysis, MarketEdge calls CWTR a "buy" in a "strong upward trend" but notes that it is "overbought." I am discounting this factor, as I believe a breakout is imminent.

Sell

gain Bottom line
10%

My selling strategy includes stop-loss orders that kick in to preserve a sudden jump in price during the day, namely, if the stock is up more than 50¢/share, sell if the price drops back 25¢ or more.

I've probably left some profit on the table: the chart looks strong, but my normal tendency is to hang on too long and watch profits dwindle away, so banking the profit is all good.