While scanning through some charts premarket this morning I spotted the following:
$XRT Retail ETF looks to have broken above its downtrend.
A little further investigation looking at a weekly RRG shows that the group is making its way deeper into the Improving quadrant.
Knowing that we have what looks to be overhead resistance turning into support, with a confirming move as shown by the above Relative Rotation Graph, it would make sense for us to begin to take a look deeper into the retail sector, starting with the components of the $XRT.
One company in particular in this space I have had my eye on all year, and traded a couple times with success has been $GOOS. (Not in the $XRT ETF) Take a look and see if you can tell me why I think this is a good spot for an entry:
I am keeping an eye on an entry around $19, hoping it trips $19 before I get in. I am looking to invest in this company but will need to make room somewhere in my long term holdings. I will likely start with some October or November calls as a starter as implied vol is low here.
In short, I think retail is setting up to continue breaking out so I’ll be digging in and trying to find some plays in this space.
By the way, if you aren’t familiar with Canadian Goose Company check them out here: Canada Goose
Some super warm looking stuff. A bit on the pricey end though so make sure to trade well. 🙂
OC