Clues To Watch For In The Retail Sector
Last Friday’s decline on the lowest volume
of the year has carried over from the three-day Memorial weekend. The
markets are at the lowest levels they have seen in two weeks. Volume is also
lighter than average.
Consumer Confidence came in in-line with estimates,
and Home Sales came in at 5.79M, stronger than expected, but neither piece of
news has moved the market other than down.
The Philadelphia Gold & Silver Index
(
$XAU.X |
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PowerRating) is one of the leading sectors on the day, and also positive is the
oil drillers. The PHLX Oil Service Sector
(
$OSX.X |
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positive.
The Dow Jones Industrial Average
(
$INDU |
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opened and trended sideways, then broke down below its key 10,000 support level.
At midday, the Dow was trading near the lows of the day.
With the PHLX Semiconductor Index
(
$SOX.X |
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continuing to decline for a sixth day in a row, it has put pressure on the tech-heavy Nasdaq, trading near the lows at the
mid-point session. The AMEX Biotech
sector
(
$BTK.X |
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Anglogold
(
AU |
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PowerRating) is attempting to take out
its recent 52-week high. Today, volume is above average on AU and the price
is being pushed by gold’s strong performance today. AU has a
TradingMarkets.com RS3 rating of 96
and an uptrending
ADX
of 47.
Paypal
(
PYPL |
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PowerRating)
has rallied back above the 20-day moving average after pulling beck from the
high. PYPL has a
TradingMarkets.com RS3 rating of 98
and an uptrending
ADX of 20.
Federated Dept. Stores
(
FD |
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PowerRating) touches the
50-day MA. The big retailers continue to fall, but may be near a bounce. If
already short, you may want to consider taking partial profits. If not yet in,
wait for a bounce intraday for further shorting opportunities. In addition to
(
FD |
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PowerRating), watch
(
TGT |
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PowerRating),
(
WMT |
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PowerRating) and
(
DDS |
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PowerRating).
Dillard’s
(
DDS |
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PowerRating)
has triple 9s to sell. This particular
alert means that means large blocks of shares were sold. If this occurs
repeatedly, it could indicate that institutions are scaling out of their
positions. It is important to watch whether this is also occurring with other
stocks in the retail sector. Dillard’s appears to have formed a higher low on the daily and may offer
some shorting opportunities on intraday retracements (currently trying to
bounce). Other retailers that are weak on the day include
(
TGT |
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PowerRating),
(
WMT |
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PowerRating)
and
(
MAY |
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PowerRating).
Market internals remain negative, with
Downtick volume outpacing the Uptick volume.
NYSE Adv/Dec 1107/1963. Nasdaq Adv/Dec 1188/2108.
Volume remains below average.
,