Is anybody not aware of the massacre in retail-land? Names like Gap (GPS), Kohl's (KSS), Macy's (M), Bed Bath & Beyond (BBBY) and Urban Outfitters (URBN) have been decapitated over the past year. And now, after Thursday's close, we're reminded just how poorly Dillard's (DDS) and Nordstrom (JWN) continue to perform.
The bottom line is that traditional retail is doing terribly. But this is not new news! It's been doing terribly for a really long time.
You're sure to hear some analyst or trader bashing the sector on CNBC. But if you're a short term trader and you plan to enter Friday's session with an eye toward selling retail, just remember how badly beaten up the sector already is. The time to sell poorly performing stocks, many of which are already very heavily sold short, is not after they've dropped 10%, 20% or even 30% in a single week. Leave these stocks alone. The majority are well past reasonable, on a risk to reward basis, to sell short.
Traders' infatuation with Twitter (TWTR) will never end, or so it seems based on emails I've received. Simply put, the chart looks terrible, the stock trades poorly, and I see no reason whatsoever to be long the stock.
Apple (AAPL) cracked on Thursday. Barring a sharp reversal on heavy volume above $95, I can't see wanting to trade this stock on the long side. Let's wait and reevaluate it closer to $85.50.
Light crude oil futures continue to consolidate above $46, showing no signs of reversing lower. If you're trading energy, stick with the long side, at a bare minimum, as long as the price is closing above the 200-day simple moving average.
Any trading or volume profile related questions can be posted in the comments section below, emailed to me at email@example.com or posted to my twitter feed @ByrneRWS.