ARO & Sears

Aeropostale is down roughly 8% at the open on heavy volume; they've missed their estimates. I like the company and will look to own it long term but for now I'm afraid that we must look for another entry point. The morning's action will determine a sale of our current stake. This is a perfect example of patience and discipline. ARO was up nicely on 11/27 with heavy volume. The specialty retailers and consumer discretionary as a whole had a very nice day yesterday. We waited knowing that ARO has an all time high of $31.88 and that a push through that point on good volume would be a sign to ready the trigger. With the most recent developments I wonder if we'll get there now.

Additional notes from yesterday: "PSUN needs to get to $17-17.50 before adding. URBN, a break through 28 would be positive."

Sears Holdings is down nearly 14% on a very disappointing report. Much has been made of the turnaround that Eddie Lampert has orchestrated. Recently, they've been vying for Restoration Hardware while management at RSTO has resisted. It'll be interesting to watch Lampert either create an investing vehicle much like Berkshire Hathaway or unwind his position in SHLD.

Mixed message from Retail