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VIDEOWal-Mart, Target Ready to Rally?
But earnings reports could stop them in their tracks.
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Greetings from New York, where I’m getting my feet back under me after a short, intense, trip to Canada for fishing. I was hot and raining in Canada and it was still easy to stay dryer than it is walking a block in Manhattan. Were I Scottish, I’d wear a kilt, a loose fitting, cotton, kilt. As it is, the Tyranny of Woolen Pants still dominates New York and the entirety of America. 
From where I’m sitting (in the dark with a fan set on high just inches from my face) reclaiming our proper place as the Greatest Country on Earth could happen in one easy step: when a 40-year-old, married, parent of 2 can leave his house wearing a cotton kilt anytime the humidity and heat are oppressive and soggy without being asked a bunch of annoying questions.
Here’s what else I’m mulling as the market melts like Frosty in the Greenhouse with Karen:
- Is this a definitive “break”? I don’t think so but a close below S&P 1,000 is going to leave those buying the banks last Friday at SPX over 1117 kneeling and uttering the Prayer of Bad Trade: “Please, Oh Market, get me back to even and I shall never chase again”. A close below 990 is cut and run time.
- Curiosity of the Day: Wal-Mart (WMT) and Target (TGT) are higher on the day. The stocks are both more than “due” for a rally -- but they also report over the next week or so. The retailers may beat slightly panicky low estimates but it seems doubtful that they are going to blow an All-Clear for Back to School or the Holidays.
- The government’s car company says next year’s Chevy Volt will get 230 miles per gallon. This is for those who drive less than 40 miles a day, never leave the city, use a car radio or panic about running out of energy entirely. Should they drive more than 40 miles, they will run through the fuel in the teeny weenie gas tank.
- Another point about government and stocks: the numbers from the government regarding retail sales later this week are to be ignored. We had Same Store Sales last week. We hear earnings reports from individual companies for the next couple weeks. If horses are talking to you directly do you listen to them or the jockey?
For what it’s worth, I’m a little less angry at Bank of America (BAC) today. All will be forgiven if the stock ticks the 14s. - With that, I’m off to pick up the kids then head into the city. Keep your eye on the closing levels.
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