1 Irrational Rally You Shouldn't Chase

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J.C. Penney (NYS: JCP) has gone on a little run recently following horrendous earnings. Most of the time when a company reports weak numbers and shares surge it's because the numbers wern't as bad as people were expecting. In J.C. Penney's cas, it's just the opposite -- they were worse. Revenue fell 23%, same-store sales dipped 22%, direct-to-consumer sales fell 33%, and gross margins narrowed. 

CEO Ron Johnson was able to pacify the markets with encouraging words about J.C. Penney's strategy. He admitted some fault, but ultimately stuck with what's been a poorly received pricing strategy. Unfortunately, there is a lot more going wrong at this company than going right. 

However, Ron Johnson's retail magic is still shimmering elsewhere. Over at Apple, the operations he put in place are still alive and well.

However, with the impending release of the iPhone 5 and Apple TV on the horizon, the stakes have never been higher for the company. If you're looking for a recommendation on how to play Apple, along with continuing updates and guidance on the company whenever news breaks, we've created a brand-new report that details when to buy and sell Apple. To get started, just click here now.

Austin Smith owns shares of Apple. The Motley Fool owns shares of Apple and Coach. Motley Fool newsletter services recommend Apple and Coach. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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