Therapy for Retail Therapy

After a good deal of discombobulating price action, the retail sector is notably outperforming today even as small caps lag. As I write this, the retail sector ETF, XRT, is up nearly 1% while IWM is down 0.5%. 

Regarding individual retail names, we have highlighted a few on this site, namely FL PLCE TIF, as holding up better than their peers and sporting sound overall charts. 

But there is also the issue of whether the true downtrodden names in the group, such as JCP JWN M RL, can stage meaningful turnarounds to propel the sector higher. For now, though, I am looking to see if some of the better charts in the sector can, first and foremost, break to new highs and ignore a sector-wide rally beyond today. 

Ollie's Bargain Outlet, below on the daily chart, is a top XRT holding and is also looking to be one the sector's leaders. Note price above all moving averages with spurts of strong buy volume in recent months, the essence of a strong uptrend. 

The tail end of earnings season, meaning from now until mid-June, is usually dominated by retail stocks. So, the stakes are high across the board for this sector.

More on my the market in my usual Midday Video for Members.