Schaeffer's Daily Market Blog Features: Joseph A. Bank Clothiers, Brocade Communications, Vanda, Perry Ellis International, and Parlux Fragrances

Early this morning, Joseph A. Bank Clothiers (NASDAQ:JOSB) reported that third-quarter earnings rose 17 percent from last year to $5.5 million, or 30 cents per share. Analysts were anticipating a profit of 29 cents per share. Sales rose 13 percent to $119.5 million. Same-store sales rose 2.3 percent.

Heading into the report, expectations on the Street were decidedly low. WhisperNumber.com quoted JOSB's whisper number at 28 cents per share, with the website's consensus of investors offering up opinions arriving a penny below the analyst view. Furthermore, Zacks reported that four of the five brokerage firms offering up an opinion on the shares rated them a "hold." And the biggest potential driver arrived from the short-selling community, as more than 44 percent of the stock's total float was sold short.

So, why didn't all these bears rush for the exits? The answer is: "Never under estimate technical resistance." Scanning JOSB's technical charts, I found that the stock has been capped by its 10-month trendline since April. What's more, today's peak in the equity at $32.52 coincides roughly with this long-term moving average. Apparently, today's good earnings news was not solid enough to punch JOSB through this rather stout line in the sand.

1:40 Brocade May Still Have Room to Run

Heavy put option volume on Brocade Communications (NASDAQ:BRCD) may be depressing the stock in the short-term, but the upward trend could resume as these bearish players seem to be reaching extreme levels. When sentiment is concentrated on one side of the trade, that's rarely the side you want to be playing on. Given the strong upward trend of BRCD shares over the past few months, the high level of pessimism is exactly the type of "wall of worry" that stocks like to climb. Today's put option volume on the shares is more than four times respective call options volume.

2:03 PM Vanda Up Dramatically

Rockville, MD.-based pharmaceutical company Vanda (NASDAQ:VNDA) made previously unseen gains today after announcing positive results for Phase III trials of its experimental schizophrenia drug, Iloperidone. Barring complications, the company plans to file a new drug application in late 2007. Adding to this, in an interview with CNBC today Vanda's Chief Executive said that a number of pharmaceutical companies have expressed interest in acquiring the outfit.

Since going public last spring, the stock found resistance at the 10-level until jumping and finding support at the 14-level in mid-November. Today, however, VNDA has soared 11 points to stand at $23.40, an increase of 70 percent.

2:58 PM Parlux and Perry Ellis See Two Different Outcomes

Yesterday, Perry Ellis International (NASDAQ:PERY) agreed to a $63 million cash deal wherein they would re-acquire their namesake fragrance line from Parlux Fragrances (NASDAQ:PARL). The Perry Ellis fragrance has accounted for approximately 40 percent of PARL revenue over the last several years. A spokesperson for PARL said that the deal "allows us to strengthen our balance sheet and have additional resources to expand our other brands."

Since hitting an all-time high of $19.24 back in February of this year, PARL has been in something of a tailspin. After finding brief support at the 6.50-level over the last month, the shares are again on the descent, currently at $5.80, a drop of 13 percent from yesterday's close. PERY, on the other hand, continues on a gradual and steady ascent, hitting an all-time high of $41.73 earlier today.