Last Friday we bought J. C. Penney for our trading account. Many of you asked: Can't you find something easier to trade?
Do you want to look at the ugliest stock chart? Look at jcpenny $JCP
My answer to this question is that at times my subconscious override my rational and we will allow to do insanity trades as long as the size is reasonable.
Maybe, there is something in the back of our minds that gets aroused by high potential trading energy and high entropy situations. The ugliest charts on the block are the most interesting for us.
We will probably lose money on this situation, but overall we have done pretty well going on dates with ugly.
The chart below is a dollar neutral $XRT $JCP $spread and it gives a few clues about the Physics of the $JCP situation.