Lululemon is gapping down on earnings despite a double beat. Nike is gapping down on earnings. A trend is showing weakness in these consumer discretionary based stocks. There will be many sympathy plays in the retail space. Watch XRT tomorrow.
Based off points given on the chart I am expecting a breakout to occur once it gets to the MA. No targets as this is a long term hold. However, I wanted to show my reasoning for why I believe the trend continues
Small caps have surged to fresh highs dating back to the first quarter of 2022. The Russell 2000 ETF (IWM) has suddenly become a darling among sellside strategists and even buyside macro portfolio managers. Recall it was just two months ago when the group traded around 12 times next year’s earnings estimates. Jump ahead to today, and a 25% rally since October 27...
GME has been getting sold off with the macro for quite some time and it continues to push deeper and deeper into dangerous territory. At this point in time, it has pushed slightly below the 0.382/0.886 Confluence Zone and is now at the 200 SMA, but with that, we can see that the Local Bullish Shark can extend into a 1.618 Extension, so the Breakout watch is far...
if it takes out that neckline. "Macy's founded in 1858. It is the largest department store company by retail sales in the United States as of 2015. Macy's operates with over 700 stores in the United States. Its flagship store is located at Herald Square in the New York City borough of Manhattan. The company had 130,000 employees and earned annual revenue of...
JWN has a trailing twelve month Price to Earnings (PE) ratio of 73.69 which places it above the histroical average of roughly 15. Another expensive retail name #JWN has alot of stores in #California Obviously not a great place to be a retailer, given the rampant crime spree going on in that state! well The chart action clearly foretells further woes ahead ..
Let's look at some household retail names starting off with The GAP #GPS It's ATH was over Twenty years ago Is this Head and Shoulders signalling a Bankruptcy event during the next recession?
The Monthly Consolidation on XRT is almost done and I suspect the next move down will be quite large. EMTY is an etf which is a 1x leverage against XRT. My view is EMTY can double from here. Good luck!
If retail earnings come in negative this stock could see further weakness. A head & shoulders pattern has triggered which means we have to be aware of continued weakness to the downside. A close above the neckline negates the pattern but being below key moving averages does not display signs of strength.
Home Depot reports earnings tomorrow. This could be telling for retail stocks. If HD earnings come in negative this would drag XRT down and likely the market leading Home builders. With the weakness in Lumber, Copper & steel weak earnings could be very likely.
AMEX:XRT Retail sector bear flag still holding support for now.
The Nasdaq made a new 52 week high. can we officially say we entered a new bull market?
Rejecting down trendline, below 50 DMA and the option flow ratio for March 17th is 4:1 puts. Very strong numbers from economy today, which means the FED will have to raise rates again at some point this year. I have been following the FOMC for 6 years, take every meeting cautiously. We also have CPI numbers on the 14th. I am holding MArch 24th 61 puts at $1.15 GL!
I bought some of this near the IPO back around $15 a share. I cashed out around $28 a share. I wished I had held, it is now near $63 a share. Small cap sports retailer out of Katy, TX with superb financials and growth plans. 0.47 PEG, ROE of 41.71%. Solidly increasing free cash flow and margins. Solid and steady accumulation. $67.13 is 1.618 extension on...
Keep an eye on Retailers in the US. Fundamentally it doesn't feel right but technically its telling a different story. Nice consolidation off the 200 weekly ma since may Last year. Level is clear here. A convincing weekly break above $66.50 should see this move higher to at least a target of $77.50
Not looking good... there could be another leg down for XRT which would drag stocks like GME to $16.4 An imminent market crash could support this move...
See ascending wedge & what the market wants (electrolytes).
AMEX:XRT Possible Scenario: SHORT Evidence: Money-Flow, Price Action PT: 58$ * I opened a short position by PUTS for 10/21/2022, strike 58$, 2.167$ each contract.