Retailers Continue March Higher In March (RTH, RLX, JWN, ANF, ANN, TIF)
March 16, 2010 4:35 PM
Retailers cannot be stopped!
Whether they be discount, high-end, mall-based or department stores, almost everywhere you look a retail stock is making a new 52-week high.
The Retail HOLDRS Trust ETF (NYSE: RTH) and SPDR S&P Retail ETF (NYSE: RLX) both hit new 52-week highs today.
Nordstrom Inc. (NYSE: JWN), Abercrombie & Fitch (NYSE: ANN), AnnTaylor (NYSE: ANN) and Tiffany & Co. (NYSE: TIF) are among the names that broke out to new 52-week highs today.
Some of these stocks are up 20% or more in the last month. The market is in melt-up mode and many of these retail names are heavily shorted, which is adding to the upward pressure on their share prices.
If you are considering buying, patience may be your best bet. These stocks have run-up with virtually no pullback. The market is complacent (look at the Volatility Index (CBOE: VIX)) and people are willing to buy almost anything. There is just too much easy money sloshing around trying to chase returns. But, nothing goes up forever, and there will be a pullback. To quote Ovid, "What is without periods of rest will not endure."
