WSM 

Let’s take care of Williams-Sonoma ( NYSE: WSM ) here. I really like this company, I like the stores. I walk in there, I feel like I am a cook, though I don’t think they have the George Foreman grill, which still is my utensil of choice; either that or a can opener and I eat stuff right out of the can.

The bottom line is, this stock, this company is doing really well. And the reason it is up so much is, guess what? They announced earnings, they reported earnings. They are buying back shares, which is always a good thing. And when money is free, isn’t this the thing that you do? As I speak this stock is going up from here. In fact, do you know what I am going to do? Just because I am feeling saucy right now I am going to go ahead and buy some, alright, 156.00.

I think this stock goes higher. The issue is, just as playing any other stock over earnings, the first move brings in all of the big momentum chasers, kind of like me. And then at some point, the stock starts pulling back and that is when you will get the real entry. And so as you look at the stock, it’s up so much. But again, they are buying back shares and they are also increasing their dividend. They don’t pay much of a dividend to begin with, they bumped it up to $0.59 a share. Not bad, not great, whatever, but I think the stock goes higher.

What I would suggest doing is, you recognize that 150.00 was this last high here, it has eclipsed it now. But this is in after-hours, this is in after-hours trading. If you look at it in just the regular hours this is where the stock was, so this is all after-hours action. What you want to see this do tomorrow is, open up above 150.00 and stay there. If it starts to fall back, like coming down here then this is a fakeout and we have seen this type of stuff before. In fact, you have seen a similar thing just back here.

And so I wouldn’t mess around with this stock. It is either going to reward you right away or it’s not. If it doesn’t, don’t sit there and wait for it to be nice to you. It is either going to be one way or another. It is either going to run above 150.00 or it’s not. If you buy it and it’s, or not, then get the heck out. You don’t want to be sitting there riding this thing down 15 percent hoping that it bounces off the 50-day moving average.

VIPS 

I want to look at VIP Shop, otherwise known as Vipshop ( NYSE: VIPS ), today. The market is really kind of sluggish today. I was just telling my members that I actually see 3 or 4 short setups that I would literally be taking, they are really, really good short setups. But even if you never short a stock it is important to understand what a short setup is so that you know when the heck you should at least not be in a stock.

There are a lot of stocks that are like that, that are in that category. I am going to show you this one today because this one is not; this is an IBD 50 stock so it’s got good fundamentals. But more than that, you can look at the “fundies” and that’s great, fundamentals are what you want to see in a company. You want to see strong growth revenue in earnings and revenue and also good margins. This is VIP ( NYSE: VIPS ), it has all of those.

All of that doesn’t mean squat if the trend isn’t working, if the chart isn’t working. And today, when most other growth stocks are down this one is up over 3 percent and it’s right along the 8-day moving average. It is hard to enter a stock like this, but this is exactly the kind of stock you want to be in. If you are long VIPS ( NYSE: VIPS ) stay long. I wouldn’t be selling into this strength, it isn’t that strong, it is actually just really steady. You want to see this kind of steady move.

By the way, I am talking about all of these setups and stuff, this isn’t one of them, you don’t want to short into this. The stock is working, if you look at the weekly chart you can get a better frame of reference. This thing could go up to $60.00, in my view, pretty easily. Pretty easily and that would be my WAG price target (that stands for wild ass guess), the price target is about $60.00, so I think you can ride this thing along the 8-day moving average. They don’t report earnings until almost June and so in a weak, sluggish, choppy market a stock like this is hard to find but it is also good to find, so I want you to consider that.