The Hot List: 3 Retail Stocks for Short Term Traders
Retail and consumer stocks have been faring better as a whole in recent days. The Consumer Discretionary Select Sector SPDRs ETF (XLY) and S&P Retail SPDR ETF (XRT) both finished higher for a third day out of the past four. Meanwhile, heading into Tuesday’s trading, the Retail HOLDRS ETF (RTH) was up nearly 1%, closing higher for a fourth day in a row and finishing at a new 7-day closing high.
But there are more than a few retail stocks that buyers have so far overlooked. And if these stocks continue to trade at levels at or near oversold territory, it may not be much longer before those looking for bargains in the retail sector turn their attention to stocks like these that the market has put on sale.
Shares of Sears Holdings Corp (SHLD) have the biggest positive edge of all the stocks in today’s report. Having just rallied back into bull market territory in the second half of October, shares of SHLD are making their pullback in bull market territory in months.
The current pullback in SHLD has taken the stock lower for six out of the past seven trading days. The stock is set to open Tuesday morning in oversold territory, as well.
Down three in a row but not yet technically oversold are shares of luxury retailer Tiffany & Co. (TIF). Despite the strong selling in the stock over the past week, traders consistently have been able to rally the stock up from session lows. Should sellers be able to overcome this intraday buying and take the stock lower in the near term, the already positive short term edge in TIF is only likely to increase.
Also closing lower for three days in a row ahead of trading on Tuesday are shares of Limited Brands (LTD). LTD is in the late stages of profit-taking that arrived almost immediately after the stock rallied to new highs in the final days of October. As with Tiffany & Co. above, shares of LTD have also managed to find buyers on an intraday basis, helping the stock finish well off session lows.
And although not trading in technically oversold territory above the 200-day moving average, any significant selling in the stock over the next few days could easily put TIF at levels where buyers have historically become interested in the stock in the short term.
All of the stocks in today’s report were available from research and data available through The Machine. To learn more, click here.
David Penn is Editor in Chief of TradingMarkets.com