Yesterday, the New York Fed dropped its household debt report.
The findings were pretty eye-opening – even for me, someone whose been pounding the “credit-reliant” drum a lot throughout the past couple of months.
Usually, after the winter holidays, people begin to slowly deflate their credit card balances and pay off all the gifts they purchased.
Well, this year, things are going differently. Credit has remained flat. In fact, there has been a drastic increase in debt delinquency.
Suffice it to say, this doesn’t paint the rosiest of pictures of the state of the American economy.
Now, it should come as no surprise that when the consumer struggles, retailers struggle as well.
And this morning’s retail sales report echoed this fear, as the increase was half of the projected 0.8%.
If you’ve been paying attention, I’ve been bearish on the SPDR S&P Retail ETF (XRT) for quite some time now. So this trouble shouldn’t come as a surprise.
But the amount of smoke that’s billowing from this sector – both technically and fundamentally – has me on red alert, looking for the perfect place and time to strike.
And with the number of big names set to announce earnings soon, there is some serious volatility lurking around the corner.
That’s why I took some time this morning to run through everything I’m seeing in retail – and lay out my preliminary plan of attack to profit…
Of course, this is just the beginning of the activity that’s to come in the retail sector.
Given the current state of the economy, I’m expecting there to be some casualties.
While I don’t wish that on any business, I can only react to what the market tells me.
That said, it would be foolish to not use the data I have at my disposal to my – and your – advantage.
My Alpha Accelerators service is particularly well-positioned to capitalize on the volatility that’s to come in this sector (and others).
For companies that are falling out of favor – or rising to the moment – that often means they’ll fall right into the Alpha Accelerators’ hands.
Here’s the most recent track record, to give you an idea of how things have been going…
You’ll notice some retail names – Gap, Big Lots, Funko – already populating the above list.
Well, I mean it when I say the volatility ahead only makes our prospects better.
May 16 2023