Cautious on Williams-Sonoma

If it weren't for earnings today, I'd say The Fresh Market (TFM) daily chart looks like a prime short. With the 9%-plus short interest, this one is a bit too difficult to carry short into the numbers. The chart is bearish with a downside target of $48 possible and the volume in the September $50 puts seems to concur. If you are bullish, I would say use some caution. It has been a favored sector, but it isn't cheap from a valuation standpoint. I would rather wait to see a pullback in Sprouts Farmers Market (SFM) to the low $30s and get my long exposure to the sector through that stock.

Longtime holding Williams-Sonoma (WSM) reports tonight. As much as I like owning this stock, I hate owning it into earnings. Although my wife did her best to support sales this quarter, I couldn't help but notice the lack of traffic on our visits there and to Pottery Barn Kids. There were buyers, but not like I saw in previous quarters....142 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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