Four Retailers at the 50-day


This post is for education purposes only and should not be interpreted as a trade recommendation.

Trend followers love to watch the 50-day moving average. So today we wanted to highlight a handful of companies near that potentially key level.

We’re also focused on retail because there have been so many signs of strength in the consumer. Employment has the best backdrop in years… ditto for sentiment and confidence readings. Several companies have also emerged in the sector as survivors as the industry tries to emerge from a wave of store closings and bankruptcies. Here are some that stand out today:

Michael Kors (KORS): The handbag maker has seen its ups and downs since going public in late 2011. It was a darling out of the gate, but then investors fretted about competition and discounting between 2014 and 2017. Management’s worked hard to turn that around since last summer and has managed to string together three consecutive quarterly beats. The last one came smack dab in the middle of February’s mini-correction. KORS consolidated amid all the volatility but is now fighting back above its 50-day moving average.

Skechers USA (SKX) also reported better-than-expected earnings last month. It also followed a huge gap higher back in October. In this case, analysts have focused on the turnaround story and increased reliance on wholesaling over brick-and-mortar sales.

Lululemon (LULU) is the biggest name on our list in terms of market capitalization. (Around $11 billion.) Recent numbers suggest the yoga-wear firm has proven its mettle online, defended margins and is even gaining market share among men shoppers. The stock is also near its old record highs from 2013 and 2016. Is a breakout possible?

Deckers Outdoor (DECK) is smallest of the four, weighing in at less than $3 billion of market cap. It also shot higher on signs of a turnaround last May and is now challenging an old high from late 2014. The last earnings report on February 1 beat estimates. The shares dropped on a downgrade last week but have held their 50-day moving average since.

This post is for education purposes only and should not be interpreted as a trade recommendation.

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David Russell is VP of Market Intelligence at TradeStation Group. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.