Retailers have had a monster run lately based on the dollar move and the oil drop. Look at this chart and this amazing run!!!

Retailers ETF chart

The run on the retailers is the same as the run as the financials but retailers are not the same animals.  They are slow growth companies that are seeing decreased sales.  The consumer is dead….did anyone forget?  No more stimulus checks and credit is being squeezed.  No more credit cards.  No more lines of credit.  No more corporate loans.  We are being squeezed.  But when Walmart reports, it can be interpreted as a good or bad thing of course but the market just sees it as a catalyst.  At this point after the run  by retailers, it’s a sell – way over bought but many people say that the word overbought doesn’t exist.  Walmart’s chart looks horrible.  Momentum is fading and the last drop was sold with large volume of 37M while the last pop up was supportetd by 37M as well.  It looks like people aren’t clear on the direction anymore.  And when investors are uncertain…the answer is always sell.

Disclosure: Short GME, MAN, GRMN, Long: XTO (Covered COF on weakness today and sold CHK on strength – switched out for XTO)