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Ho, ho, ho

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This morning's futures were looking like Santa may have left a lump of coal in a bull's stocking, but as the trading session begins to unwind; there may be something under the tree for a bull after all.

Wal-Mart Chart - Daily Interval

Share of Dow component and retailing giant Wal-Mart are approaching this year's high of $58.75 after the company said that sales were "above plan" and in the upper end of mid-single digit range for the holiday period (Nov. 23-Dec. 24). Previous guidance given by the company was for comparable store sales to be at the lower end of a 4-6% range. The retailer said that demand for electronics, toys and ladies apparel were all above plan.

Retail Index (RLX.X) - Daily Interval

"As Wal-Mart goes, so goes the retailers." Today's "good news" out of Wal-Mart looks to have the broader Retailing Index (RLX.X) breaking above the July high of $928 and back on our aggressive upward trend. Bulls in this group may well see a continued rally ahead of Friday's consumer confidence numbers. Many economists are expecting a number very close to November confidence reading of 82.7.

Wouldn't you know it!

At the end of every Christmas season, I'll take all the lights off the tree and put them away until next year. All of the lights are working, but when placed on the tree next year, there's always one bulb that is burnt out. How does that happen? Today, I've got one "light burnt out" on my charts. For some reason, my Dow Industrials chart isn't posting today's action. However, it should be known that current trading at $10,147 is enough to have the Dow Industrials breaking ABOVE it downward trending 200-day MA of $10,101. The Dow has not closed above its 200-day MA since July 19th, 2001.

Jeff Bailey
Senior Market Technician
Option Investor

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