Weakness in Wal-Mart, Home Depot, and Other Retail Stocks Flying Under the Radar
A few notable names have seen considerable pullbacks.
Either way, some big name retail stocks are underperforming. A few notable names that have seen considerable pullbacks include Home Depot (NYSE:HD), Target (NYSE:TGT), Wal-Mart (NYSE:WMT), and Amazon (NASDAQ:AMZN). Three of the four stocks have seen their near-term trend lines broken, with Amazon being the exception (although that doesn’t provide much comfort to Amazon investors after a quick 10% haircut and indifferent chart setup).
Before we look at the aforementioned retail stocks, let’s look at the chart and setup for the Consumer Discretionary Select Sector ETF (NYSEARCA:XLY). In the chart below, it’s easy to see that the 50-day moving average was taken out and price is resting on one-year uptrend support. A sustained break below the trend line is unlikely to find support until the 200-day moving average (9% lower).
Consumer Discretionary: A Look at the Retail Sector
Now let’s take a quick look at some key retail stocks that have been struggling.
Target Stock Chart
Home Depot Stock Chart
Wal-Mart Stock Chart
Amazon Stock Chart
Some notable recent outperformers include TJX Companies (NYSE:TJX) and Best Buy (NYSE:BBY).
TJX Companies Stock Chart
Best Buy Stock Chart
Thanks for reading. Trade safe; trade disciplined.
Editor's Note: Andrew Nyquist is an independent investor based in the Minneapolis area. This article originally appeared on his investing and economics site, See It Market.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.