Well, if you listen to the analysts, the retail world should be gangbusters this year. Best year in 10 years they say. So how do the charts look? Well, Amazon is off 25% from its high!! I featured it on Friday's Don't Ignore This Chart article suggesting to add it to a watch list. Well, it's still on a watch list but that is a baby-out-with-the-bath-water bar today. It was down 10% intraday today! Yikes!
So let's look through the strong ones in case you don't like buying falling knives. Lots of great retail stocks are off like AMZN, but there are some that have stronger chart shapes.
Here is Burlington Stores. On a big wide ranging day in the overall indexes, this stock printed a doji. But the recent price action has been very bullish to push over the past few weeks while the market has been falling away.
Nordstrom had a nice high volume day on Monday. It kicked off the week with a 3.9 million share day which was the highest positive volume day in two months. It also broke above previous resistance and closed right at resistance as you ca nsee in the zoom box. The PPO is just turning up. At the top of the chart is the SCTR showing Nordstrom clearly outperforming their peers right now and the purple RS has broken out of a long sideways range to really outperform.
The Shoe Carnival is kicking it up as well. Notice the gaps on the last three earnings reports. The stock is clearly trying to work its way higher. Since October 1st, the stock has slowly climbed higher. Meanwhile, almost everything else has been pulling back.
TJX has a beautiful chart, tilting up for the last year. the stock has consolidated in a tight range between $105 and $112. The relative strength is clearly tilting higher and the SCTR shows lots of strength. While the stock has pulled back in October, the fact that it held such a tight range is a positive. With volume acceleration and a momentum chart looking to bounce from a common pullback level, this stock looks set up for the season.
I had three videos last week. They all contain some good charts to work with.
Here is this week's video. Lots of interesting charts to roll through.
I have included some scans to help you find some nice setups near these lows.
The Canadian Technician video shows the massive breakdown on almost every sector chart in Canada. Canada is back below the 2008 highs. Tough ten years for investors.
If you are looking for a small gift, you might have family or friends that would like to learn more about the basics of charting. The first section of the book walks through all the chart settings to get the charts you want. The second section is why you might use charts for investing and the third section is putting it all together.
Click here to buy your copy today! Stock Charts For Dummies.
If you are missing intermarket signals in the market, follow me on Twitter and check out my Vimeo Channel often. Bookmark it for easy access!
Good trading,
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts for Dummies
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