The Amazing Sector of Retail

 | Aug 08, 2012 | 2:01 PM EDT
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When are people going to stop writing off retail?

Not that long ago people sold Macy's (M) down to $32 on what amounted to a decent quarter and good guidance. It just meant nothing to them. Seemed like people just gave up on the department store chain. Today, it gave you a good number, good guidance and it is now six points above where it was when it gave you a good number and good guidance!

Remember how furious people were with that last Bed, Bath & Beyond (BBBY) quarter? While the stock's still down 10 points from its high before it reported, it's now up five points from the low and seems to be gathering strength.

Ralph Lauren (RL) just had a remarkable intraday nine-point run as if things are better than expected, not worse than expected. Home Depot (HD) and Wal-Mart (WMT) won't quit, the last one being just a monster.

People were upset about Disney (DIS) initially, but when you think about how much people are spending at theme parks you know that the negativists just didn't get the robust nature of the theme park visitors, something we have seen from Six Flags (SIX), Cedar Fair (FUN) and, yes, Universal, which is owned by Comcast (CMCSA), my other job.

There's just tremendous momentum in all retail -- witness the Market Vectors Retail (RTH) -- and I think that people just keep underestimating the group.

Next time we get a downturn, remember how quickly they come back. OK, not everything can bounce like Ralph Lauren, but this group's strength is just plain amazing.

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we like this chart here, it appears ready to move higher. BOUGHT BZUN OCT 35 CALL AT 3.40
Large-cap, high-quality McKesson (MCK) is too cheap now, at $147.51 or so. The stock hit $243.60 more than 2.5...



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