Bon-Ton Stores (BONT)

Company. "The Bon-Ton Department Stores, Inc. is a regional department store chain with 72 stores in nine states. Our stores offer quality opening, moderate and better priced merchandise in apparel, cosmetics, shoes, accessories and distinctive home fashions, as well as exclusive proprietary merchandise." (company website)

Buy. BONT stock had been inching closer to $6 for several weeks. When it decisively broke above that level, I bought, although a week too late. By the time of my buy, it had already jumped $2.

Nevertheless, BONT kept climbing sharply and actually got over $11 on news that it would acquire Elder-Beerman Stores, a move of which Wall Street clearly approved.

Sell. It seems that BONT stock has gotten caught in the general downdraft of the market this week, and it quickly began to give back the gains.

The retreat is not unexpected after a 50% gain in just a few days. But because I bought later than the optimum buy-point for this stock, there was not as much cushion available to ride out the pull-back.

As I watched the price of BONT fall below $10 this morning, I put in a stop-loss order to sell for $9.50 if the stock traded as low as $9.45. It did; the order was triggered.

The upward trend of BONT is still strong (ADX close to 69) and buying pressure (+DI line) is still strong. In view of the general sour mood in the market, it seemed prudent to protect my gains of at least $1 per share. I don't want to get mauled by the bears!