Friday, June 14, 2019

#RetailStocks Review $XRT

Retail Stocks Review
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.

Retail Stocks' overall trend, revealed by trends of price, leverage, and time, are defined and discussed in the The Matrix for subscribers.

Subscriber Comments

Trading desks are buzzing this morning because the retail sales numbers came in hotter than expected. Hotter, of course, is a relative term. Government statistics are not that reliable, so learn to follow the message of the market. Yes, consumer consumption expenditures represents nearly 70% of GDP, so it's important.

Subscribers, however, follow retail stocks relative performance to the broader market. How are they doing? Not good. Retail stocks have been underperforming the broader market for 37 weeks. This is not going to change because the Commerce Dept reported better than expected retail sales, which it could easily revise next month.

Subscribers should be watching the cycle of time. Not cycle, bull or bear, lasts forever. Line 79 of the Matrix tells us the age of the retail stock underperformance. BrST > 2 says the cycle is vulnerable to an unexpected reversal.

Retail Stocks Oscillator

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Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.