As of 12/20/2024   Indus: 42,840 +498.02 +1.2%     Trans: 15,892 +32.54 +0.2%     Utils: 986 +14.76 +1.5%     Nasdaq: 19,573 +199.83 +1.0%     S&P 500: 5,931 +63.77 +1.1%	YTD  +13.7%   0.0%    +11.9%    +30.4%    +24.3%	Targets    Overview: 12/12/2024     44,200 or 41,750 by 01/01/2025   16,100 or 17,700 by 01/01/2025   1,050 or 975 by 01/01/2025   20,500 or 19,300 by 01/01/2025   6,100 or 5,775 by 01/01/2025
Chart Pattern Indicator: on 12/5/24

As of 12/20/2024   Indus: 42,840 +498.02 +1.2%     Trans: 15,892 +32.54 +0.2%     Utils: 986 +14.76 +1.5%     Nasdaq: 19,573 +199.83 +1.0%     S&P 500: 5,931 +63.77 +1.1%	YTD  +13.7%   0.0%    +11.9%    +30.4%    +24.3%
Targets    Overview: 12/12/2024     44,200 or 41,750 by 01/01/2025   16,100 or 17,700 by 01/01/2025   1,050 or 975 by 01/01/2025   20,500 or 19,300 by 01/01/2025   6,100 or 5,775 by 01/01/2025
Chart Pattern Indicator: on 12/5/24

Bulkowski on Bad Same-Store Sales

For more information on this pattern, read Encyclopedia of Chart Patterns Second Edition, pictured on the right, pages 908 to 920.

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Periodically, retailers announce same-store sales numbers (sometimes called 'comparable store sales'). Usually, these are sales results for stores open at least a year. Bad same-store sales make an event pattern on which you can trade. Discovered by Thomas Bulkowski in the fall of 2003.

Important Results Identification Guidelines Trading Tips Example See Also

Bad Same Store Sales

Bad Same-Store Sales: Important Bull Market Results

The above numbers are based on hundreds of perfect trades. See the glossary for definitions.

Bad Same-Store Sales: Identification Guidelines

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Bad Same-Store Sales: Trading Tips

Trading Tactic	Explanation	The Measure Rule
Measure rule	Reference The Measure Rule figure to the right. On the announcement day, subtract the intraday low (point B) from the high (A) and multiply it by the above “percentage meeting price target.” Subtract the result from the intraday low (B) to get a price target (C).
Confirmation	Wait for price to confirm the pattern because traders may push price up instead. A downward breakout (confirmation) happens when price closes below the low posted on the announcement day.
Sell	Sell a long holding or short the stock after confirmation.
Repetition	Another bad same-store sales announcement often follows the first one.
Yearly middle	Patterns in the middle third of the yearly price range show the best performance.
Bottom	Price may bottom quickly. Over 60% bottom in less than 2 weeks in a bull market, 57% in a bear market.

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Bad Same-Store Sales: Example

The above figure shows an example of a same-store sales event pattern. Price leaves a consolidation region at A and shoots up to B. Then the stock begins a long slide downward. Along the way, the same-store sales number becomes public and the results send the stock down. Price attempts a pullback in February, but then price resumes the downward move.

-- Thomas Bulkowski

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See Also

• What do you know about event patterns?
• Best buy days. Which day of the week is the best one to buy or sell?
• Best buy months. Can buying at the end of the worst performing month and selling at the best performing be profitable?
• Dutch auction tender offers. Can you make money trading these?
• 10-baggers. Find 10-baggers using fundamental analysis.
• Value investing. How to Pick Stocks Using Fundamental Analysis.
• Holidays. Does the market rise or fall before and after holidays? Answer: Fall.
• Market cap. Chart patterns in small cap stocks outperform.
• Seasonality. What are the best months to buy and sell stocks?
• SEC Forms. What do they tell the trader or investor?

In God we trust. All others we monitor. -- NSA