No Fumble from Macy's This Time Around

A remarkable but seemingly under-the-radar relative strength chart during the recent market uncertainty has been the iconic department store, Macy's. Macy's has been in a devastating downtrend since 2015, at one point in the conversation among retail bears (and/or Amazon bulls) to go to zero. 

However, as you can see on the daily chart, below, Macy's has quietly improved, with price now operating smoothly above rising and properly-aligned moving averages in front of May 16th earnings. 

With several weeks to go before that next earnings report, the heavily-shorted Macy's may very well be a prime candidate for a short squeeze over $31, the next technical hurdle to clear for bulls. One reason why Macy's is attractive here is due to how well the chart withstood the market swings the last two months or so--In prior cycles Macy's would have easily rolled back over and suffered ugly gaps lower on heavy volume, but not so this time around. 

While the retail space as a whole remains mixed, there are some notable winners as we have profiled on this site and for Members. Surprisingly, Macy's is at least in the conversation even if it is far from a new school retail leader. If the chart can remain intact through Memorial Day it may very well be a nice continued comeback story into the back half of 2018. 

Elsewhere, equities look to be in a bit of a holding pattern in front of GOOGL earnings tonight to kick off a busy week.