This is one of the most risk-on groups in the market.
Bulls want to see these consumer stocks hold the line—if they do, and the market rebounds, XLY should be a good place to be.
And when we talk about consumers, we have to talk about retailers.
Some of the largest retail stocks in our universe are at or near key levels right now.
Let’s dive in and talk about some of our favorites:
First up, the largest retailer in the world—Amazon $AMZN.
In January, chief congressional whale Nancy Pelosi bought between $250K–$500K worth of stock.
Say what you want about her, but when Nancy shows up on our list, we pay attention—she’s one of the sharpest traders in Washington.
Amazon broke out of a multi-year base in October and has been pulling back to its breakout level since February.
This area has been key resistance in the past, and now it needs to hold as support. If AMZN is above 190, the bias is higher, and the primary trend is intact.
Next is another big online retailer, Alibaba $BABA.
Last month, Softbank Group filed a 13G, revealing an 8% stake in the Chinese tech conglomerate.
Meanwhile, the stock is completing a textbook trend reversal.
Price is coiling above its breakout level, which aligns with the VWAP from its all-time highs.
As long as we’re above 120, this is a fresh uptrend for BABA.
Next, this is Sea Ltd, the Amazon of Singapore. Former House Representative Kurt Schrader reported buying $50,000 worth of stock back in 2022.
The stock reversed trend last year and has been climbing the right-hand side of its base since.
And recently, SE has been bucking the trend, pushing higher despite broad market pressure. The relative strength speaks for itself.
And here is Coupang $CPNG, the Amazon of South Korea.
Just like its peers, CPNG is in the process of completing a rounding bottom formation.
On November 12, 2024, Greenoaks Capital Partners LLC disclosed a $54.6M purchase in a Form 4 filing.
The upside potential is huge, and the risk/reward is skewed in our favor as long as this is a valid base breakout.
Last but not least, we have DICK'S Sporting Goods $DKS.
This is one of my favorite charts out there.
A year ago, William Colombo bought $8,557,200 worth of stock.
DKS is consolidating in a healthy way right at a critical extension level.
If we can get above 225, I think a new leg higher is coming.
This has been a leader in retail for a long time.
But if you want to learn retail stocks from an expert, join JC live today at 4 p.m. Eastern with Jeff Macke.
Jeff will pull back the curtain on his new live model portfolio and break down the biggest opportunities in retail. Click here to watch now.
