Last weeks price action in the S&P 500 index and the Dow was quite mild. No gigantic intraday swings finishing the week slightly down.
Small caps however finished higher and made a new all time high. Whoopie! The recent uptrend in the $US could be a contributing factor to small caps out performing large caps.
iShares Russell 2000 Index Fund ETF (IWM) weekly
PowerShares DB US Dollar Index bullish Fund (UUP) daily
Is retail making a comeback?
XRT, the retail sector ETF, has been chopping sideways for five years. Price is currently at the upper end of the chop zone. After multiple breaks above resistance (green line) in 2016 and ultimate failure in 2017 and trading at the lower end of the chop zone, exactly I might add, price has now rallied up and thru resistance. Looking better.
SPDR S&P Retail ETF (XRT) weekly
I love the golf shirts at Stein Mart Inc (SMRT) so much I went in there the other day and shopped. This might not sound too strange unless you know that I NEVER go shopping without my wife…meaning the only reason I happen to be in a store that sells clothes is because I’m hanging out with my wife.
Well, Stein Mart’s quality and prices lured me in. Two golf shirts, one pair of golf shorts and a belt…$110 out the door.
SMRT has gone from $.50 to $3.25 in three months. That is a big move in a short period of time so I wouldn’t jump in just yet. I would like to see $3.00 hold over the next week or so. Then, I could get lured in.
Stein Mart (SMRT) daily
Lululemon (LULU) has recently broken out to new highs. Price has struggled for six years to break above the $80 area. Now that it did I think it’s likely to go higher. I sure would like to see a little pullback before entering but I’m starting to get interested. Full disclosure…I have only drifted through this store once…with my wife.
Lululemon Athletica Inc (LULU) weekly
Macy’s (M) has quietly made a nice run over the past few months. After clearing some resistance ( old highs from 1998, 1999 and 2004 ) price is popping nicely. Hmmm, interesting.
Macy’s Inc (M) monthly
Guess? (GES), Tailored Brands (TLRD), DSW Inc (DSW), Ulta Beauty (ULTA), Urban Outfitters (URBN) have all broken out to the upside recently.
I don’t like all retail but I do like the “athleisure fashology” trends. I’m not sure what that means either but I sure like the stretchy fabric they are using now in golf shirts and shorts.
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Continue to hold all open recommendations.
Have a great week.
Trade Smart,
Don