Energy prices down, retail stocks up. Goes together like America and apple pie.
As oil and unleaded gasoline have fallen more than 20% since peaking four weeks ago, money has been moving into many retail names. But what caught my eye was the monstrous volume seen in many retail chains on Monday, August 11. Just check out the charts below of Kohl’s (KSS), Home Depot (HD) and Gap (GPS)– in particular, notice the gigantic volume that flowed into these stocks on Monday. Many other big retailers are experiencing similar action.
All three stocks burst above their 200-day moving averages, another sign that the trend has most definitely changed.
The only problem is that none of these stocks have great fundamental numbers, which is usually required for a major advance. But for trading purposes, any of these three (KSS looks the best) could be bought on minor weakness, say, a pullback of 5% or so.
1 response so far ↓
1 Robert Cranston // Aug 27, 2008 at 8:11 pm
The Lady in thePink Suit
“The Iconoclast” report of a national deficit of 53 Trillion dollars is like a bolt of lightening in my medulla oblongata. As the national debt was three trillion only a few years ago how do these figures of “The Iconoclast” develop. Where do they come from? As I considered that a three trillion debt was in a national economy of about 12 trillion I thought it was a manageable amount. But these figures are like popovers in mother’s oven. My thinking has been way off and especially when I hear all this bloviation about the most expensive possible service “medical care” that these associates are going to sprinkle about in their magnanamous way equally and fairly which amounts to robbing us of our frugal savings and telling us they have been cruelly conceived with no consideration for those wonderful carefree asociates. Its called living on other peoples money. A service we have been paying for by straining our utmost even though we knew that it could conceivably be taken away from us by soneone with a glib tongue, a pretty round face, sparkling wide open eyes and a pretty pink pants suit. She is very clever. Look now you didn’t deserve it in the first place. Youv’e been chauvinistic and tight with your money and now yours is ours and all it took was my messianic charm. Now we are all set to take more of your hard work. Our unions anticipate your weakness. You will see our wonderful legislative program. We can control your money, the economy. Remember it is blessed to give. Yes, blessed to give, and look at the large loving numbers behind me who are telling me all this and following me in my pretty pink suit.
My thoughts have been we could have a safe country for ourselves with our military security but no way could we afford socialized medicine. Now it sounds if we don’t manage we will throw our money away on socialized medicine and lose our international security in the middle east too. Why, because we haven’t anticipated enough the power of the pacificists and their desire to give our resources away through porous borders mostly to the south but certainly porous in every direction. You will get to love them the lady in the pink suit will say and they all love me.
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