Summer Doldrums, But Earnings May Bring Some Excitement

Dow: -5.82...
Nasdaq: +23.31... S&P: +2.25...

Retail got crushed again today.  Some of the names in the group started to crater last week as they pre- announced their earnings, but it doesn't  look good for this sector right now as the "Amazon Effect" takes hold. Here is one little example of Amazon's potential reach in destroying retail.  As a result, Best Buy ($BBY) got hammered today. There are many other stories like this lately and $AMZN has a multitude of destructive tentacles and they're just getting started.

Retailers everywhere have their guard up now and really no retailer is safe. I'm not trying to wax apocalyptic, but this could be just the beginning of a massive exit in the retail space.  Don't think there is room lower? Look at the monthly chart below. Just something to think about. All of the shorts in retail that I have talked about over the last several weeks/months are lower and look lower still, so there could still be a huge opportunity on the short side in this sector.

Energy still sucks.  ($OIH & $XLE) caught small bounces today, but are very battle damaged and need much more time. Unless they blow up the Straits of Hormuz, energy is dead money for now.

Right now my favorite sector charts continue to be bio/healthcare We are seeing beautiful bull wedges/flags setting up after the massive high volume breakouts of a few weeks ago. These are all in the midst of normal and orderly consolidations. As long as the flags hold, then all systems go.

$IBB

$XBI

$XLV