Many businesses go to zero over time - update

Just a few days later, the retailers mentioned below performed as such. To be truthful, they are far from being done selling. I would continue to sell the rallies. — see original post below

Original post 05/22/23

Here is a ratio graph of XRT retail ETF vs. SP500 . When the line goes down, the first ticker underperforms the second. When the line goes up, it’s the other way.

by comparison, here is XLK vs SP500

Retail is a very hard business. You don’t create much; you buy something cheaper and sell it for more money, in a nutshell. All kinds of things can go wrong, from your supply chain getting disrupted, from materials costing more, from landlords increasing your rent, or Amazon taking your market share.

It’s much easier to short retail than other things in general. Charts don’t go up and into the right for too long. There are a few opportunities there for those that are comfortable shorting. Not everyone is. If you know where you’re wrong, it should not be a hard thing.

Here is a list I put together of the ones I personally like to the short side.

If you want to dig more, here is a CSV file with 125 retailers from the US that are also optionable, from the following industries in retail. Apparel retailers, Broadline Retailers, Clothing Accessories, Footwear, Specialty retailers.

There could be some more hidden gems in there.

Cris

ewcafe@pm.me