Williams-Sonoma Making Refurbished Soup Pots from the Great Depression Great Again

I must admit that after yesterday afternoon's fade in many retail stocks in the XRT ETF I surmised that the sector could use a bit of a pause, despite the bullish tone and tenor to our recent ideas and blog posts regarding the sector both here and for Members. 

Nonetheless, with Williams-Sonoma surging this morning after earnings, to the tune of 12% as I write this, the bullish vibe for retail is only getting stronger.

WSM was a chart we had looked at previously, reckoning that the obnoxiously overpriced items (for the kitchen mostly) would only truly flourish in the most bullish of tapes for retail and the consumer. Well, here we are winding down a summer where plenty of retail and consumer names have, indeed, done quite well on both a relative and absolute basis. 

Headed into autumn, Deckers is a name we ought to be closely tracking. Of course, Tom Brady and Uggs are two Deckers-related themes which always seem to do well in autumn, headed towards the winter. But DECK is also a sound chart, seen below on the daily timeframe, and a logical buyout play even for private equity firms, as the rumor goes. 

Either way, retail is staying stubbornly strong which may be a tell that there is more to come--When a strong but extended sector barely gives up ground (XRT is flat right now) though it "should" be correcting, and money rotates within the sector instead of leaving it altogether, we want to take notice.