Markets recorded yet another lackluster session Tuesday as the holiday it quickly approaching. The benchmarks were little changed today as the Nasdaq gained fractionally and the S&P 500 did just the opposite. With just one and a half days left in the week the Nasdaq is up 1% and the S&P 500 by .2%. The quiet action did not include the energy sector. It was the worst performing sector with a loss of more than 1% proving that weak names tend to get weaker, and vica versa. As we have been discussing the strength of the retail group recently, energy has proved to be negatively affected. It is one correlation that seems to be working the way it has in the past. Each of the ETFs we keep an eye in the space are all either in correction or bear market mode, and all three are have heavily downward sloping 50 day SMAs. The XOP is 28% off its most recent 52 week high, the OIH down 25% and the XLE by 15%. Some retail stocks that reported earnings today were SIG and BWS. They were up 7 and 10% respectively, while others released numbers today as well but reversed off nice gains. They included TIF DSW and CHS all up 2.5, 2.2 and 1.9% but well off intraday highs. SIG is a name that is “shining” brightly and has delivered a perfect 4 for 4 after earnings in ’14. It has risen by 7, 7.7, 5 and 6.8% on 11/25, 8/28, 5/22 and 3/27. No more playing the red headed stepchild to TIF. SIG is higher by 67% YTD as TIF is up 16%. Below is exactly how we profiled SIG in our Wednesday 11/5 Game Plan.
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