The following is just a small excerpt from my latest Weekly Strategy Session (please click on that hyperlink for details about trying it out). which I published for members and 12631 subscribers this past Sunday.
Turning to the retail and consumer discretionary space, it is interesting to see the consumer discretionary ETF, first below, notably outperform the retail ETF on Friday. This would seem to suggest a more narrow, stock picker’s game in the consumer complex as we work through the holiday shopping season.
In particular, note the heavy sell volume on the retail sector ETF daily chart, on the bottom of the second chart below.
And to drive that point home, compare and contrast the mild pullback of one department store, Macy’s, still a long idea on strength, versus the weakening and now sloppy pullback in another department store, Nordstrom.
With this in mind, an actionable long idea headed into this week is specialty retail play,BONT. This is a heavily-shorted, high beta stock with a low float. It typically is prone to violent shorter squeezes higher during the holiday season especially.
On the daily chart, note the tightening bull flag consolidation after a recent breakout higher. I am looking for strength over $18 next week to initiate a long position.
On the other side of the tape, Ralph Lauren notably lagged Friday’s broad market rally. I am looking here for a short trade upon further weakness down from the light blue line-denoted consolidation on the daily chart. Also note the broader double-top pattern would only reinforce itself with another breakdown below $169.
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