I have been watching the retail space very closely for some time now, like Macy’s, Gap Stores, and Dick’s Sporting Goods (DKS) to name a few. I liked this area of the market because when the overall indices were falling, sometimes “crashing,” most of the retail names that I was watching were only marginally lower. To me it said that with any renewed strength, these names should benefit.
Of course, in addition to looking at a sector like retail, one needs to do very specific homework in each of the names. After all, despite being in the retail space, they are no all created equal.
In today’s video I discuss our recommendation to buy DKS yesterday. After Thursday’s recommendation, DKS caught a bid and closed the day higher than the entry. Friday was far better, as the bid continued and led to a very strong +3.82% gain for the day. What’s more, the strength allowed us to move the protective stops above the entry, thus locking in a nice gain while still riding it higher if it does so.