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.
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