A few posts back we talked about the need to look at the sector ETF charts on a regular basis to help decide which sectors of the market are working best. This focus will help you choose the best performing stocks in the best performing sectors, offering the best chances of success.
XRT, a retail sector ETF is looking healthy.
COST is a stock in the retail sector that is a highly rated stock by IBD and is looking ready to leg higher. We will be watching this closely. If the market (SPY as proxy) continues to perform as expected, COST may be a great risk for outperformance. It is extended here, so wait for a lower entry price for a better risk/reward ratio. Yesterday’s low price is a good point to place a stop.
Stay tuned for more.