Does Size Matter In Retail Currently?

We all are aware of the pervasive softness across the retail group. And it is not just the mega-caps like AMZN and TSLA which are now 11 and 28% lower from their most recent 52-week highs. Amazon reversed after attempting to break above a long cup base just below the 3800 figure. TSLA chatter has essentially come to a halt which is probably a bullish development and it is now trading near the very round 900 and the gap from the 10/22 session is now filled. WMT once a taut mover, has become very wide and loose in PRICE action, and to me is not interesting here. Below is the chart of the XRT which is the more “equal-weighted” consumer ETF and is comprised of smaller cap plays. The ETF is on the cusp of bear market mode off 19% from highs made just in mid-November. The breakout last month above a tight range since March was a bear trap, but respect that the fund lost ground just 12 weeks during a year-long run between the weeks ending 3/27/20-3/12/21. There is no question there is still some proving to be done here but have your list ready to take advantage of when the time arises.

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