February 25th, 2014

Bearish on this retailer. 

 We entered a JWN (Nordstrom)  bear call spread today on a Chaikin analytics overbought sell and relative strength sell signals.   JWN reported last week, so no need to worry about earnings.  The XLY ( consumer discretionary ETF),  to which JWN belongs ,  continues to underperform the S&P and is a great place to look for neutral-bearish trades in this overbought market.  JWN has a very bearish Chaikin Power Gauge rating, the long term Chaikin Trend line is pointing down and price is below the trend.   Additionally, the Chaikin Overbought / Oversold oscillator is currently in overbought  territory and rolling over. Plus, there's  bearish money flow and weak relative strength for better than the past 6 months.  This trade met all of our rules.  We received a decent credit at the open today, with  a  40% reward v 33%  risk.   You can see  all of our options trades here.