Consumer discretionary group, or retail group, is a vital sector to the strength of the economy and therefore has stock market implications. Purchasing by individuals makes up more than 2/3rds of GDP and the group has been on the move higher, a good sign. Lets take a look at a leader that had a hiccup recently and below is how the stock was profiled precisely in our Friday 3/6 Game Plan.
CST is a retail name down 3% YTD and higher by 30% over the last one year period. CST we wrote about very recently in our Friday 2/20 Game Plan with a potential move above a 45.35 trigger which was never taken out, therefore no one should be in it currently. The stock has been a very poor performer with earnings as it has declined each of the last 4 times falling 5.4, .1, 4.8 and 3.3% on 2/27, 11/11, 8/12 and 5/13. CST recorded a bullish engulfing candle Wednesday on a tepid tape rising 3.5% in strong trade. Two days prior on more than double average daily trade it produced a bullish hammer. Lets look to enter on a pullback into the candle at 41.55.