Apparel Store Sector … Dead Cat Bounce??

I haven’t traded traditional retail names to the long-side much the past couple of years.  I still think that sector will be challenged over the next several years, but they do provide counter-trend trades for the quick and nimble …

Apparel Store Sector – Weekly Chart

Maybe the large institutions that wanted out of this sector during this current quarter are almost done, and the “deep-value” contrarian managers are stepping up here as of late.

Apparel Store Sector – Daily Chart

The counter-trend bounce broke and then accepted the break of the ATR resistance level on the daily chart.  The relative strength vs the SPY ETF has broken above its consolidation pattern pivot highs and volume has been increasing as of late.

Apparel Store Sector – Ranking by Market Cap

Not a lot of mega-cap names, but there are a few interesting charts to note.

Ross Stores – Weekly Chart

I think this one is just going to fail before making new highs, but in the interim the daily chart below shows that money is flowing back into the name.

Ross Stores – Daily Chart

Today’s price action broke a multi-day range consolidation pattern.  Tomorrow could see some follow-through or it could show us a nice failure that would be sure to stop out the weak longs from today.

Cheers … Leaf_West

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