The majority of brick-and-mortar retailers have dropped in reaction to the sars coronavirus pandemic, and stay-at-home orders, leading to an increase in the number of bankruptcies that have included deposits by J. C. Penney, Neiman Marcus, and J. Crew. Large box outlets have benefited in the same time, lifting Walmart Inc. (WMT) stock to an all-time high, while most of the smaller chains have bounced back from deep lows, but are still struggling to find buying interest.
Similarly, a basket of traditional retailers is relatively well despite the stiff headwinds, and to be able to trade, especially as the crisis eases. These mavericks are selling things that people need, or that they hold a competitive advantage with market share. A handful have also solved the problem of the online sale challenging, attractive building of portals that allow clients to stay away from Amazon.com, Inc. (AMZN), and other wholesale stores.
Williams-Sonoma, Inc. (WSM) recently beat top and bottom line first quarter of 2020, estimates, reporting a 2.6% comparative sales growth, even if all 616 stores were closed in the second half of the first quarter. The stock posted a record high of $89.38 in the third quarter of 2015, and entered in a downward trend eased in the low $40 in August 2017. The increase was subsequently dropped to $73.44 in August 2018, which gives a sell-off that found support at this level in the month of December.
In January 2020 evasion failed two weeks later, leaving the place to a vertical drop which has hurt the 2011 low before settling at $26.01 on March 18. The stock has shot higher in April, a sculpture in the shape of a V mount model January resistance on Wednesday. The balance volume (OBV), the accumulation-distribution indicator reached an all-time high, at the same time, setting the stage for a critical test of the stock market price of the all-time high. The upward trend in the volume divergence raises the chances that the rally will eventually overcome this barrier in a new bull market leg.
Dick’s Sporting goods, Inc. (DKS) stock topped out in the upper part of $50 in 2016 and entered a downtrend which has found support in the mid$20 to the fourth quarter of 2017. The stock then eased into a slow motion recovery of the wave, stall at the .618 sell-off of the retracement level in December 2019. An orderly decline accelerated into a freefall at the end of February, the rupture of 2017 support before coming to rest at 11-year low in the low teens.
The subsequent bounce has now reached the .618 sell-off of the retracement level, which is a common turning point after a rebound from oversold. OBV has raised an all-time high, at the same time, the generation of a bullish divergence suggesting that the stock will eventually break this barrier and reach the December peak of nearly $50. Even so, it is probably better to wait for a pullback to the 50-day exponential moving average (EMA) near $30 before you even think about jumping on board.
MarineMax, Inc. (HZO) sells recreational boats, and yachts. The company has just advised that positive retail activity has continued, while the other boat retailers are reporting a 30% to 50% of the increase, in 2020, the turnover a result of the pandemic. This corresponds to a similar increase in the sales of recreational vehicles, which is logical due to the steering of a boat is an ideal way for the practice of social distancing as long as it is not a cruising boat with a large storage capacity and a closed ventilation system.
MarineMax stock topped out at $28.69 in 2015, after six years of the bull trend, entering a decline that found support in the mid-teens, a few months later. It finally broke when the floor is in March 2020, has fallen to a seven-year low in the single digits before you enter in a V-shape model, which has recovered all but two points of the first quarter sell-off. OBV has raised the return to the 2015 high at the same time, probably signaling the end of the five years of the downward trend.
The Bottom Line
A handful of traditional retailers attract unusual second quarter of the purchase of the interest that could provide appropriate profits to the carefully timed long positions.
Disclosure: The author held no positions in the aforementioned securities at the time of publication.