Economic sentiments are evenly poised at the moment with the
fourth quarter GDP coming in at -0.1% followed by positive
looking trade data from two of the world's leading economies,
namely U.S. and China. Turning closer to home, investors now have
retail sales data to look forward to on Wednesday, which could
give the space more direction going forward (see
Time to Buy Retail ETFs?
Looking at it from an ETF point of view the
SPDR S&P Retail ETF (
will be in focus this week. And judging by its charts, it could
post a positive picture before the upcoming release.
After bottoming out from its lows in the second quarter of
last fiscal year, the Retail ETF XRT has been quite impressive.
Nevertheless, a look at the short term price chart of the ETF
reveals that it has already witnessed a consolidation during the
last two months of the last fiscal year.
This characteristic of XRT was very different from most of its
counterparts, which were facing a tremendous amount of volatility
following the fiscal cliff sell off and the rally thereafter.
During this time, XRT witnessed frustrating range bound trading,
particularly between the $60 to $64 trading channel (read
3 Overlooked Ways to Target Consumers with
However, what followed thereafter was an excellent reward for
patience. Investors who held on to XRT did not see much action
(neither upside or downside). This was particularly because the
sell off and the subsequent rally mostly affected dividend
players like utilities, MLPs, REITs etc. Nevertheless, the
somewhat defensive XRT held its ground.
Finally on the verge of positive looking Retail Sales Data in
mid-January, XRT broke out of its $64 resistance level. It then
confirmed the breakout was an above average trading volume
Not only has this helped the ETF to break the range bound
trading action but also injected strength into the ETF. Also, the
breakout has certainly helped XRT to carry the much needed
momentum forward (read
5 Sector ETFs Surging to Start 2013
It is quite evident that the ETF has come out of its
consolidation mode and started showing bullish signs. The ETF has
very recently entered an upward rising trading channel making
higher highs and higher lows. While this is a very positive sign
for XRT investors, a sour looking Retail Sales data can surely
spoil the party (see
Emerging Market ETFs to Soar in 2013?
However, the downside seems to be floored within a range of
$66.5-$60 as the ETF had seen some consolidation between these
levels. This is also the immediate support level for XRT.
Nevertheless, a positive Retail Sales data will surely be
vital for the further upmove of the ETF. Also, the trend is
surely on the positive side for the Retail ETF, as it is trading
above its key moving average lines, so XRT's run could certainly
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PWRSH-DYN RETL (PMR): ETF Research Reports
MKT VEC-RETAIL (RTH): ETF Research Reports
SPDR-SP RET ETF (XRT): ETF Research Reports
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