Retail's bargain basement

July 20, 2016 01:00 PM

In a difficult year for stocks, the retail sector has not provided particularly strong performance. While this sub-sector fell along with the general markets in January and early February,its recovery has been considerably weaker than the S&P 500. On a year-to-date basis, the SPDR Retail ETF (XRT) has returned about -3.56%. This compares to a 2.28% return delivered by the S&P 500 Index (see “Missing the mark”).
Smart Momentum analytics, as supplied by Trendrating, detects changes in momentum quickly and reliably, helping investors limit downside capture and protect profits in down markets while presenting positive momentum opportunities not to be missed by the discerning investor. 

This report utilizes innovative momentum analytics to assess the health of U.S. retailers. It shows that even in a lackluster sub-sector like retail, the model has been able to spot some clear winners. Analysis like this helps eagle-eyed investors profit from the early identification of developing momentum (see “Best & worst of retail”).

While there are some definite winners and losers, the broad trend has been weakeing for retailers (see “Bad mojo”). The diagram looks at the evolution of momentum in general retailers, over the last year. We can clearly see that this sector was moving into negative momentum until about late February where it experienced a mild recovery.

About the Author

Rocco Pellegrinelli, Trendrating founder & CEO, began his career as a portfolio manager and investment banker and has since been a proven fintech entrepreneur for the past 20 years. He created Brainpower in 1996 and established it as one of the top portfolio management systems globally. After going public on the Frankfurt Stock Exchange in 2000, Brainpower was acquired by Bloomberg in 2006. @trendrating