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Showing posts from January, 2017

Retail Stocks Won't Join the 2017 Rally

Stocks have rallied since the Trump election and the Dow (DJIA) just passed 20,000 for the 1st time ever, but there is one sector of the stock market that just won't join the party.



Retail stocks continue to lag the overall market, a theme highlighted in our retail stock report from December 2016. While the post-election period saw a boost for many industry groups and the leading stock indices, the consumer retail sector is showing further signs of deterioration. 

Here's a technical snapshot of some of the leading mainstream retailers and retail brands. Included are charts of Nike (NKE), Under Armour, (UAA), Ralph Lauren (RL), Macy's (M), Wal-Mart (WMT), Target (TGT), Kohl's (KSS), and Dollar Tree (DLTR).




While the market has been offering up many opportunities in stronger groups such as financial services, banks, steel, construction, chemical stocks, semiconductors, tech, and cannabis, these widely-owned retail stocks (with the exception of NKE) have continued to slide.