Vintage is everywhere.

Look at a stock like Etsy Inc. ETSY is an online shopping site that specializes in vintage items [among other things]. It reported last week. Sales, earnings per share and revenue were all up. From the nadir in March until the multi-month peak in early November, that stock merits watching this week.

Many other retailers report this week: Home Depot, Dick’s Sporting Goods, TJ Maxx, Wal-Mart and Best Buy, to name a few. Those retailers mainly represent the brick and mortar shops, even if they have an online presence as well.

The Retail Sector ETF we like to watch is XRT, or our Granny of the Modern Family. Last week, XRT did the resuscitation thing and rallied from key support above 38.00.

Many articles, including my own Daily, have addressed the potential ripple effect to the economy should XRT fail 38.00

Will Granny benefit from vintage consumerism and play “base”?

Last week, certain sectors deteriorated in phases.

  • Transportation (IYT) confirmed a warning phase.
  • Biotechnology (IBB) is already in a warning phase.
  • Retail (XRT) is already in a bearish phase.
  • Moreover, the Russell 2000 (IWM) entered an unconfirmed warning phase.

    That means it closed beneath the 50 daily moving average and must do so again tomorrow to confirm.

    Should IWM fail 144.75 by the end of November, the top of the monthly channel, not a good sign at all.

    Recovering from the Distribution Phase, Regional Banks (KRE) improved to an unconfirmed warning phase. A second day confirmation or another close over 54.71 could mean more confidence in the business or finance sector. That will help.

    With the Modern Family teetering on major failures, only Sister Semiconductors (SMH) yields confidence.

    However, SMH, after the big red bar last Thursday, needs to hold current levels or could fail 102 and drop to 100 in a flash.

    While Granny Retail keeps it old school in her vintage 1960’s silver platform high heel shoes, the retail earnings might very well turn out as the “guitar hero” or the “where are they now” for the market.

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