Comments on: Retail Stocks Appear Ready to Fail http://zachstocks.com/2009/06/retail/ Dynamic Investments for Exceptional Traders Thu, 18 Mar 2010 20:23:35 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Zachary Scheidt http://zachstocks.com/2009/06/retail/comment-page-1/#comment-7249 Zachary Scheidt Wed, 10 Jun 2009 19:16:15 +0000 http://zachstocks.com/?p=1590#comment-7249 Thanks for your thoughts Ted - It certainly could be that retail stocks become rangebound. But I think some of the momentum investors who have ridden this ride higher may quickly bail once the trend stalls. Your opinion is certainly worth considering - especially for retail stocks with lower multiples. Thanks for the comment! Zach Thanks for your thoughts Ted – It certainly could be that retail stocks become rangebound. But I think some of the momentum investors who have ridden this ride higher may quickly bail once the trend stalls.

Your opinion is certainly worth considering – especially for retail stocks with lower multiples.

Thanks for the comment!
Zach

]]> By: Ted Hurlbut http://zachstocks.com/2009/06/retail/comment-page-1/#comment-7246 Ted Hurlbut Wed, 10 Jun 2009 15:04:07 +0000 http://zachstocks.com/?p=1590#comment-7246 I see it a bit differently. I think the run-up in retail stocks over the past three months reflects the belief that retail fortunes will pick up later this year, likely in Q4 when the comps turn much easier. That's not the same thing as 'recovery' however, because we're in a new normal, currently putting in a base, and growth from here is likely to be modest, whenever it begins. That's why retail stocks have encountered resistance now, and the resistance is clear to see, from a technical perspective, when you look at the S&P Retail Index. I don't see retail stocks turning down sharply, but I don't see them breaking through resistance in the foreseeable future either. I anticipate we'll see range trading for a while. I see it a bit differently. I think the run-up in retail stocks over the past three months reflects the belief that retail fortunes will pick up later this year, likely in Q4 when the comps turn much easier. That’s not the same thing as ‘recovery’ however, because we’re in a new normal, currently putting in a base, and growth from here is likely to be modest, whenever it begins. That’s why retail stocks have encountered resistance now, and the resistance is clear to see, from a technical perspective, when you look at the S&P Retail Index. I don’t see retail stocks turning down sharply, but I don’t see them breaking through resistance in the foreseeable future either. I anticipate we’ll see range trading for a while.

]]>