Nordstrom Inc. ($JWN) was gaping down about 8 percent Thursday after the close after missing earnings and revenue estimates as well as providing guidance that was below consensus estimates. I generally look to trade this type of intraday news catalyst – missed earnings/revenue and poor guidance – on the short side, assuming I can find a low-risk setup of course. In the case of JWN, however, the stock has just been hammered, as has the retail space in general. One positive thing that I did notice in the report was that the company reportedly gained market share.

The stock was more  than 40 percent from its all-time highs and was not making new daily lows Friday morning despite its negative news catalyst.  As you can see in my morning notes for Friday below (which I tweeted out before the market open), I had $46.80-$47.10 as potential support.

Morning notes with some names I’ll be watching today: $TRUE $AMAT $JWN $WMT $IBM $TWTR $JACK $FOSL $ICON #Intraday

— Jake Huska (@MarketPicker) Feb. 19 at 09:21 AM


$JWN 2.19.16 (morning notes highlighted)

$RTH 2.19.16 (daily)

$JWN 2.19.16 (30min)

$JWN 2.19.16 (1min)

When a stock doesn’t trade down on a negative news catalyst, like Nordstrom had, that’s typically a bullish sign. I think there’s a possibility that the stock has seen a short-term bottom (disclaimer: I’m not predicting anything, and I am currently flat the stock!).


Thanks for reading. Please let me know if you have any questions or comments.

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Why I Got Long Nordstrom ($JWN)