Consumer Hurting… uhm… yeah
J. Crew declined some 20% today as they beat the street, but issued their warning. JCG has one of the best management for clothing retail, and if they are hurting the generic big boys do not stand a chance.
For this reason I shorted RTH. Anyone who thinks the consumer is not suffering, and simply listens to ‘pretty-packaged-economic-data’ (because of seasonal adjustments) is kidding themselves to the real conditions out there.
RTH is also technically at a resistance point, and getting oversold.
If it rallies, I can see a potential move to 98 as per the chart, I will short some more.
