Category Archives: Retail

Will the Dow Jones US Retail REITs Index Recover From Its 34% Decline?

By -

After dramatically dropping 34% from its historical high of 151.85 from mid-2016 to a low of 99.98 in May of this year, the Dow Jones US Retail REITs Index has been stuck in a sideways trading range and is attempting to maintain a stable position above a long-term 40% Fib retracement level of 102.42, as shown on the following MonthlyWeekly and Daily charts.

Longer term, the Monthly momentum and rate of change technical indicators are hinting of further weakness.

In the medium term, the Weekly momentum and rate of change technical indicators are hinting of potential strength. (more…)

Ka-BOOM!!!

By -

I don’t think there’s ever been a single stock I’ve suggested as a short more than Finish Line (symbol FINL). My poor tastytrade viewers probably got sick to death of hearing about it, but it’s one of the most amazing topping patterns I’ve ever seen, and given how far it’s fallen, I doubt anyone’s bitching about my frequent mentionings of it.

One problem I’ve had as a trader is covering shorts too soon. One great example is Chicago Bridge & Iron, which I yammered on about endlessly as well. It did indeed fall hard, and I took my profits. The problem is……….it won’t stop falling.

0828-cbi

(more…)

Why Is Home Depot Stock Slumping After Earnings Beat?

By -

Home Depot (HD) beat on EPS, Revenues, and Same Store Sales when it reported on Tuesday prior to the market open. However, after initially popping 2.5% to 158.11 from Monday’s 154.26 close, HD reversed sharply into negative territory at 153.00/10 in pre-market action and closed the day at 150.17, down 2.6%. 
 
I am not sure what the selling is all about, except for a “sell-the-news” reaction, but one look at my 4-hour chart of HD, we can see that HD actually peaked back in mid-May, and since has established a series of lower-highs (including Tuesday morning’s spike to another lower-high). 
 
From a near-term perspective, HD needed to hold support in the 152.40/60 area to avert triggering a potentially significant sell signal from one of a handful of powerful, still relevant and profitable, brick and mortar retailers.  

(more…)