Most retail stocks have bounced higher since the July lows. Some stocks have had much better bounces than others. However, the entire sector is lagging the market at this time and a few leading retail stocks should be watched closely.
Best Buy Inc (NYSE:BBY) has bounced higher since it made a daily chart low on July 6th at $32.81 a share. Today the stock is rallying higher by 0.85 cents to $36.63. Best Buy Inc will have daily chart resistance around the $37.70 level which is the daily chart 50 moving average. Should the stock clear this level then the $39.00 level will be next important resistance area on the daily chart.
Bed Bath & Beyond Inc (NASDAQ:BBBY) is trading higher today by 0.53 cents to $39.25. This stock had a rough time in June when it traded as low as $35.73 a share. Bed Bath & Beyond Inc will have strong daily chart resistance around the $41.00 level. Should the stock trade above that area the next important resistance level would around the $42.00 – $42.50 area. Currently the stock looks to have found good support around the $36.00 level.
J.C. Penney Inc (NYSE;JCP) is trading higher today by 0.53 to $25.59. This stock found a low in early July and has been off to the races ever since. J.C. Penney Inc has now traded over the daily 20 and 50 moving averages which is normally a bullish sign. However, the stock is getting short term extended and should meet good resistance around the $26.00 – $26.50 area. Once the stock pulls back or consolidates it can be watched for possibly more upside.
The retail stocks continue to trade higher with the overall stock market indexes. However, this sector is no longer leading the market higher as it did throughout most of 2009. Many of these leading stocks are coming into important resistance levels and this is certainly worth noting.
Nicholas Santiago
Chief market Strategist
www.InTheMoneyStocks.com
