Shares of J.C. Penney (JCP) have surged 27% so far in 2015, although the stock has certainly gotten a boost from squeezed short-sellers who have sold nearly a third of the retailer’s stock with the hope of buying it back later at a lower price. Diane Jaffee, portfolio manager for the TCW Relative Value Mid Cap Fund (TGVOX), said the company’s comeback is for real and the naysayers should be ignored. 'Recent reports say J.C. Penney was a big Black Friday winner,' said Jaffee. 'And with almost 20% of its sales online, they can do it either way with customers coming into their stores or shopping online.' Jaffee is also bullish on Sealed Air (SEE), which has seen its shares rise 7% year-to-date. She said low oil prices have helped the packaging-maker’s margins because the cost of resin has plummeted. She added that mid-cap stocks like Sealed Air tend to be overlooked at this point in the economic cycle because when there are worries about growth investors tend to run to mega-caps.
More from Video
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.
Breaking down an approach to the long side of this biotech stock.