Even though the market was bug-eyed bullish on Friday, roaring to highs never before seen in the history of humanity, retail continues to crumble. Macy’s, already down about 70% from its peak, fell nearly 8% on Friday alone. The scary thing is that if the analog I’ve pointed out dozens of times actually comes through, it’s just going to keep spiraling toward, well, $0.
Well on its way to such an ignoble feat is JC Penney, down nearly 20% on Friday (!) and down about 95% from its own high (what possessed people to pay over $60 per share for this thing back in 2007 is beyond my limited cranial capacity).
I guess what it all adds up to is “Long the New” (Amazon) and “Short the Old” (everybody else that tries to sell stuff). The very big picture, captured by the retail fund XRT, continues to hold out the prospect of major support level, indicating the entire retail sector is primed for doom.
