Time to Short Big Retailers?

 | Apr 01, 2013 | 2:57 PM EDT
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If retail was so weak in March, according to PVH (PVH), don't you think it's amazing that Kohl's (KSS), Macy's (M) and Target (TGT) aren't sinking? Wouldn't you expect them to be under short-selling pressure?

To me, at my old hedge fund, I wouldn't be taking any chances and I would be scaling back on these or even shorting them. Then I think, how it is possible that Wal-Mart (WMT) could just keep charging ahead, oblivious to the news that PVH gave on its call. In fact, if you really want to get ridiculous, the retailer that's acting the worst is Nordstrom (JWN), which probably sells the least PVH products makes of all the major department stores.

If you are worried about a slowdown, as so many are, and if you think that the consumer eventually has to be affected by something -- higher gasoline, higher taxes, failing consumer confidence -- this would be the group to exit. No real takeover fears, no corporate actions that can improve the relative positions of these stores -- it just seems that a quick short might be in order.

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