New York & Company (NWY)

Company

"New York & Company, Inc., founded in 1918, is a leading specialty retailer of fashion-oriented, moderately-priced women's apparel, serving customers for over 86 years. The Company's proprietary branded New York & Company merchandise is sold exclusively through our national network of New York & Company retail stores. The Company operates over 560 retail stores in 45 states. Our target customers are fashion-conscious, value-sensitive women between the ages of 25 and 45." (company website)

NWY 1-year chart
NWY 1-year chart

Buy

NWY 2-month chart NWY 2-month chart

I took advantage of this morning's steep sell-off in the market to buy another lot of NWY. I chose to hold onto an earlier lot after NWY hit the recent high, considering the clear, strong uptrend.

  • Price momentum (PPO) — picking up gradually
  • Trend (ADX) — has been very strong since the beginning of the year
  • Money flow (CMF) — slight inflow now at the end of a long period of money flowing into NWY
  • Relative strength (RSI) — oscillating above normal after a period of weakness in mid-2006
  • Volume — pretty stable, although slowing a bit

Based on technical analysis, MarketEdge calls NWY a "buy" in a "strong upward trend."

Sell

gain Bottom line
1%

No good deed goes unpunished. New York & Company reported increased sales and increased earnings, but the guidance they gave for the next quarter fell short of Expectations. Although it is still sitting just above the 50-day moving average, with the market experiencing mood-swings I don't want to take the chance of losing the slim gains that I still have. NWY had reached $16, but there are now enough signs of weakness in the chart (falling volume, falling RSI) that I simply don't want to risk a loss — I've had too many of those this month.