Pacific Sunwear of California (PSUN)

Company

"We started as a little surf shop in Newport Beach in 1980, and we're now one of the top names in teen fashion with 900 stored in 50 states. As we've grown, our focus has remained: stay true to our roots in youth culture and offer what's next now. PacSun is headquartered in sunny Anaheim, California, where employees can hit the on-site gym or full-service cafe. Our distribution center is located in Olathe, Kansas." (company website)

psun(4-2)
PSUN 4-month chart
psun(4-1)_1yr
PSUN 1-year chart

Buy

After a nice run up, PSUN pulled way back to the 50-day moving average and appeared to reverse direction. So, I jumped back in, signals to the contrary.

  • Percentage price oscillator (PPO) — diverging below the signal line
  • Volume — higher volumes since mid-October

Based on technical analysis, MarketEdge calls PSUN a "buy" in a "strong upward trend," noting that it is "oversold" and at a "good entry point."

Sell

gain Bottom line
-21%

Uncle! Shoulda paid attention to the PPO signal! What more can I say? Gambled, and lost big time. I kept looking at how oversold PSUN was and thinking that it would soon be a bargain to the market but for some reason, nobody's buying. Perhaps it's all that cold weather everywhere else.