Following Up on Best Buy

By -

On December 2nd, I did a post called Best Sell for my Slope+ members (it was at that time someone suggested making the URLs a little less obvious as to the content). I started off by saying:

Best Buy has benefited mightily from the insatiable desire of the American public to spend money they don’t have on stuff they don’t need. I would suggest that the company is, shall we say, richly valued, in spite of its break of a major descending trendline.

More specifically, I was focused on it closing a gap, and I wrote:

More specifically, I have shorted BBY with a stop at 43.22, which is just above an important gap. It might be prudent to sit tight a little more for the price to get closer to the gap, but I’m not feeling especially patient today, so I’ve gone ahead and put myself in position.

Well, I was right about the gap; the stock climbed for three more days after my post (although not by much; the gap from November 18 was at $43.03, and the high price three days after my post was $43.01, an incredible 2-cent proximity!

Anyway, here’s the follow-up, with an arrow marking my post, including a bonus table showing how amazingly prescient and useful those Wall Street analysts are.

0116-bby

Bonus chart of one of the weekly options. Check out the volume. Any chance anyone knew something in advance? Eh?

0116-bbyopt