Retail Therapy to Cure Your Pandemic Malaise

Rotation is the lifeblood of the bull, and that should likely be respected all the more during one of the most seasonally bullish times of year. The moment, of course, will not last. But until then, broad market bears continue to grow frustrated with capital shuffling around even as the indices screamed near-term quite overbought yesterday. 

And now this morning we are seeing the retail sector heat up impressively, with a variety of names we have been playing and tracking with Members, such as BOOT DKS W, all higher and threatening fresh breakouts from fairly tight technical price bases. 

On the XRT sector ETF daily chart, below, the retail space may just be getting started, as the notated cup and handle bullish formation figures to be in play. A push up and through $95/$96 this week opens the door to traders piling into the sector for a stimulus check party, as Americans still love to spend.

And what better than some retail therapy as the weather warms up to make us all feel better after a tedious pandemic?  Thus, the shopping mall REIT like MAC should still be watched for an eventual squeeze higher, alongside department stores like JWN and M. 

One final note on retail: Recall that this sector has been lagging for years on end, for obvious reasons as AMZN ate the world. In fact, a name like LULU was one of the few bright spots and, frankly, all anyone ever thought about when it came to retail proper. 

But a rotation here gives a plethora of beaten-down names (longer-term) some room to participate.