"The volume is not convincing me in the dollar stores,” he said. “If you look at the recent breakouts, there’s not much to get excited about.”
If you are looking for a retail play, Sozzi suggests getting creative. He likes Deckers Outdoor because it has been able to pass along price increases. He also suggests a short position in Skechers because Nike and Under Armour are doing so well.
As for the high end, he likes Nordstrom.
Steve Cortes said if Sozzi is right that the dollar stores are heading lower, then he would “definitely” be a buyer at lower levels.
“The lower end consumer has really gotten such a tax break from food and energy coming in as hard as they have,” he said, “they will have more money to spend at Wal-Mart and dollar stores.”
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Trader disclosure: On Sep 28, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Najarian is long (AAPL); Najarian is long (BX); Najarian is long (C); Najarian is long (MS); Najarian is long (HPQ); Najarian is long (AAPL) calls; Najarian is long (WLT) calls; Najarian is long (CSX) calls; Najarian is long (UNP) calls; Najarian is long (OVTI) calls; Najarian is long (JOYG) calls; Najarian has long options in (DLTR); Cortes is long SO; Cortes is long CAG; Cortes is long US Treasuries; Cortes is short AAPL; Cortes is short Nasdaq futures; Cortes is short Aussie dollar; Karabell owns DE; Karabell owns MTW; Karabell owns AAPL; Karabell owns CAT; Karabell owns FDX; Karabell owns GOOG; Karabell owns JPM; Kinahan is long INTC; Kinahan is long GE; Kinahan is long MOS; Kinahan is long TLT; Kinahan is short S&P 500
For Zach Karabell
Rivertwice is long CMI|
Rivertwice is long DE
Rivertwice is short XLF
For Brian Sozzi
For Jonathan Geller
CNBC.com with wires.