Sears Roebuck and Company was formed as a catalog company in the early 1890’s. For more than eighty years its name was synonymous with stability in American Business. It survived wars, depressions and many rivals hungry for their business.
In the first part of the 1990’s and the advent of internet shopping began to take some of the glitter off of the symbol. By the early 2000’s Sears was on a slide that appeared to be the end of a great run. In 2004 the company was on the verge of bankruptcy when it was merged with another struggling retailer K-Mart.
The new company was known as Sears Holding and began trading on the NASDAQ. The driving force was Edward S. Lampert and his hedge fund ESL Investors.
On Friday Sears Holding closed the day up more than 50% for the year making the retailer the top gainer of all listed stocks for the year 2012, from worst to first.
Could anyone have predicted this move in Sears Holding?
I am sure some pundits had the pick, but we didn’t need to predict this move in order to profit, we only needed to react to what the market is telling us. In this case the market wanted to go higher.
Reaction and observation are the keys to any market condition.
Reacting will create opportunity. Recognizing opportunity and the discipline to take advantage of it is my specialty. That is what produces winning trades.
I teach my students discipline and how to make it work for them in any type of market condition. I can teach you too.
To learn firsthand how I would trade this type of key reversal stock, speak to one of my representatives and sign up to work one-on-one with me here:
Keep those stops tight.
Todd “Bubba” Horwitz
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