Can retail make a comeback? Or is it a dead cat bounce? I am looking at a lot of the apparel makers trying to make a stand, and it won't be easy.
There's one word why: inventory. There's too much in the system. It's all over the place, too. Too many accessories. Too many shoes. Too much sportswear. Too much athletic wear.
Yet today we don't see it. Today we have many stocks trying to bounce, with VF Corp. (VFC) and Under Armour (UA) trying to hold and make a stand. (VF Corp. is part of TheStreet's Trifecta Stocks portfolio.)
I don't know if it is possible, but I want to point out that Skechers (SKX), VF and Under Armour hold the key. They all intimated there is more inventory in the system right now than they want, but not so much that if we had a better couple of weeks it could go away.
But more than ever, there is an undercurrent that Amazon (AMZN) is the reason why department stores are feeling the pain, not the lack of shoppers. Either way, we are in some weird moment where we can bounce based on absolutely nothing, when we went down on hard data about inventories. (Under Armour and Amazon are part of TheStreet's Growth Seeker portfolio.)
I say be careful, those inventories are still out there. They didn't go away over the weekend.