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For a good period of time this year we kept hearing the phrase…”Blame it on the weather,” which was the excuse for soft retail sales. Even though the broad market isn’t up a ton in the first 5 months of the year (up 5%), retail has lagged (Down 3%), see chart below.
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Premium members picked up DLTR because of a positive pattern looked to be at hand in the chart below.
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As you can see, buyers have stepped into DLTR after resistance was taken out. Carl Icahn seems to think Family Dollar is undervalued, as he has announced this morning he has established a large stake in the company (see article here) .
If XRT breaks resistance of this small pennant pattern, odds increase it will bring in new buyers, similar to what took place in DLTR!
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