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Sector Trade: Retail

The S&P retail Index hit a 52-week intra-day high on Tuesday partly due to the positive sentiment generated by Citigroup, which upgraded Macy's to "buy" from "hold," citing increased conviction in the department store operator's top-line and margin potential.

Analyst Deborah Weinswig raised her price target on Macy's stock to $30 from $15, and said the company's localization initiative should lead to improved top-line and margin trends ahead, particularly beginning in 2010.

In light of this bullish outlook, what’s the retail trade?

I’m watching TJMaxx , counsels Pete Najarian. The stock just hit a 52-week high and they just announced a massive buyback, he explains. Their same-store sales continue to impress. There’s no options action but when I look at their P/E and earnings potential it just seems to me they’re doing everything right. I also like Molson-Coors and Pepsi . Both stocks perform well during the fall.

I like The Buckle , says Joe Terranova. And I’m bullish on Amazon .

For me the trade is shortAbercrombie & Fitch, adds Guy Adami. Those valuations don’t make sense.

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Trader disclosure: On Sept. 22nd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour And Seygem Asset Management Own (MTL); Seymour Owns (AAPL), (BAC), (VALE); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Najarian Owns (C) Calls; Najarian Owns (JPM) And Is Short (JPM) Calls; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (MSFT) And Is Short (MSFT) Calls; Najarian Owns (PALM) Calls; Najarian Owns (RNWK) And (RNWK) Calls; Najarian Owns (SII) Call Spread; Najarian Owns (WFC) Put Spread; Najarian Owns (YHOO) Call Spread; Najarian Owns (FCX) And Is Short (FCX) Call; Najarian Owns (CELG); Najarian Owns (CLX) Calls; Terranova Owns (WFT). (F); Terranova Owns (F) Calls And (F) Puts

For Joe Terranova
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Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO
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Virtus Investment Partners Owns More Than 1% Of (IGE)
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For David Goldberg
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(DHI), (PHM) Is Or In Past 12 Months Has Been An Investment Banking Client Of UBS Securities
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