Target opening new stores, creating new jobs

That said, the company is taking solace in not-as-bad news (just like the rest of the economy), as same-store sales fell 2.9% in August -- far better than the expected 5.1%. The Minnesota-based retailer hopes this trend can continue, especially since monthly traffic was flat for the month; a marked improvement from second-quarter trends.

I have been bullish on Target in the past, and I am not sure that this is the best time to change that tune. Since hitting its 2009 nadir of $25 in March, the stock has rallied to overtake the $45 level. This level is important, as it has acted as resistance in the past and could now provide a measure of support (a role it also filled in the past). What's more, the shares are cruising along their 10-week moving average. This trendline has acted as support in the past, and could continue in this rather crucial role.

I like the technical picture for Target, but what about the fundamentals? I mean this is supposed to be a rather dismal Christmas shopping season, right? In short, yes. However, tightened purse strings could serve to help Target -- as the retailer provides good deals on quality generic products. Perhaps grandmas and grandpas will be a bit more willing to part with $10 bucks for a Target-brand t-shirt rather than $50 for a Jon Gosselin/Ed Hardy monstrosity. If this is the case, watch for good news to start hitting the mark for Target.