Trading Retail Woes
The 2007 Holiday shopping season was anything by merry for most retailers. 63% of stores fell short of already low expectations. Is there a trade here?
Wal-Mart was one of the few stores that beat expectations, explains Dylan Ratigan. They reported a 2.4 percent rise in December sales at stores open at least a year, beating Wall Street expectations, as customers flocked to its stores for cheap groceries.
Wal-Mart’s has really turned the worm, says Jeff Macke on CNBC’s “Closing Bell” in terms of competing with Target (TGT). You might want to start getting long.
If you’re looking to play retail, I recommend going best of breed, which for me is Wal-Mart and Costco . But, if you own any other retailer that’s rallied today you should probably sell into the strength.
> Read more “Wal-Mart Reports Happy Holidays, Sales Up 2.4%”
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Trader disclosure: On Jan 10, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (YHOO); Najarian Owns (AMR), (BIIB), (C), (MSFT), (EBAY); Najarian Owns (CFC) Options, (WM) Options,(YHOO) Options; Finerman's Firm Owns (KSS), (WMT), (YHOO), (AEO); Finerman's Firm Owns (MDY) Puts And Is Short (MDY); Finerman's Firm Owns (MSFT) Options; Finerman's Firm Is Short (IJR), (IYR), (SPG); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns Russell 2000 Puts And Is Short (IWM); Finerman's Firm Owns S&P 500 Puts And Is Short (SPY)