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Retail Stocks Feel The Heat



March 29, 2012 – Comments (2) | RELATED TICKERS: RTH , TJX , BIG

The leading retail sector has been surprisingly strong despite the high price of gasoline in the United States. The Market Vectors Retail ETF (NYSEARCA:RTH) is finally declining this morning. The important and highly followed RTH is trading lower by 0.34 cents to $41.74 a share. Short term traders should watch for intra-day support around the $41.40, and $40.75 levels. The daily chart of the RTH remains in an uptrend as price is still trading above the 50, and 200 moving averages.

Some leading retail stocks that are coming under early selling pressure include Best Buy Inc (NYSE:BBY), Big Lots Inc (NYSE:BIG), TJX Cos Inc (NYSE:TJX), and Target Corp (NYSE:TGT). Most retail stocks remain strong, however, there are a few leading stocks in the sector which are beginning to break down. Overall, the RTH is still technically strong on the charts.

Nicholas Santiago

2 Comments – Post Your Own

#1) On March 29, 2012 at 12:05 PM, amassafortune (29.11) wrote:

Consumer Metrics has some of the weakest trending data in recent months, despite higher commodity costs.

If anyone knows of any Y-O-Y retail unit sales data, that would help show the trend without adjusting for inflation and currency-based purchasing power erosion.  

China has been slowing and most of the EU is in contraction. Some tax receipt data, though still early to make solid conclusions, indicates a slowing. 

The mild winter may have pulled forward some sales that gave Lowe's, Home Depot, and other select retailers a boost in Q1, but it seems we are experiencing solid quarter-end revenue weakness.

Personally, I can absorb the gas and energy price hikes, but my health insurance premium just arrived that will necessitate cuts in other areas to absorb. 

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#2) On April 23, 2012 at 1:36 PM, amassafortune (29.11) wrote:

RLX is barely holding support, but RTH has broken below support. Expect more downside.

The Consumer Metrics charts showed some strength since this post, but that may have just been tax returns being immediately pumped into consumer spending. Then again, after four bad years of raises for most, and 50% of new college grads being unemployed/underemployed, any tax return spending spike may have been for essentials. 

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