Retail Stocks Flex Muscle Early
This morning, the retail sector is the one area of the market that is holding up despite the early stock market declines. Many traders and investors have been buying retail stocks as the price of oil, and gasoline have declined. The Retail Holders Trust(NYSE:RTH) is trading higher this morning by 0.42 cents to $112.90 a share. The RTH remains above the daily chart 20 and 50 moving averages which keeps the RTH in good technical shape. The 52 week high for the RTH was made just three trading days ago at $114.38 a share. This level will still be minor daily chart resistance until the RTH can close above that high. Short term day traders should watch for intra-day resistance around the $113.16 area.
Other leading retail stocks that are trading higher this morning are Home Depot Inc.(NYSE:HD), J.C. Penney Inc.(NYSE:JCP), and Costco Wholesale Corp.(NASDAQ:COST). Some retail leaders that are trading lower this morning are TJX Cos Inc.(NYSE:TJX), WalMart Stores Inc.(NYSE:WMT), and Bed Bath and Beyond Inc.(NASDAQ:BBBY). At this time the retail sector is showing good relative strength compared to the major stock indexes. Therefore, if the stock market somehow catches a bid higher intra-day, the retail stocks could lead the markets higher.