Luxury Retail Woes Subsiding?
In the woes of a recession, it is well known that luxury goods tend to hold up better than their peers. Of course, there are always exceptions and one just has to look to our neighbor to the North and see GOOS falling miserably following a short break above a WEEKLY cup base just above the very round 50 number with a bearish shooting star 11 months ago. Domestically TPR is now 37% off its most recent 52-week highs and is bouncing near the completion of a bullish morning star pattern from 5/12. In Europe, CPRI is trying to find footing near the round 40 number, where it is familiar from this May, July, and September on a WEEKLY basis. BURBY has recorded a spirited run recently and now finds it back above the very round 20 figure and its 50-day SMA. Below is the chart of the largest of them all in LVMUY. Bears have tried repeatedly to follow through on large WEEKLY losses and have failed to do so. The latest example is the week ending 9/13 which lost 8.8%, its third largest WEEKLY loss of 2022. But last week the stock CLOSED higher fractionally, with good relative strength as the XLY and XRT fell in the 3% area.