Buyers Are Leaving the Market – and It’s Flashing This Warning Sign

The big story of last week wasn’t a story at all. It was the lack thereof – the eerie quiet in the market.

We saw the S&P 500 drop to its lowest weekly volume figures since October. But back then, we had a reason: everybody was waiting for the presidential results before investing in stocks again.

This time around, the low buying isn’t as easily to nail down. We were charting into new all-time highs, but volume was abysmally low.

In fact, last Friday’s volume was the lowest since Christmas Eve 2020.

This is a big, flashing sign that buyers are pumping the brakes ahead of earnings season, which starts this week with companies like JP Morgan (JPM), Fastenal (FAST), Goldman Sachs (GS), Delta Airlines (DAL), and Taiwan Semiconductor (TSM).

It’s a busy week of earnings that’s got great potential to deliver a catalyst for the next 5-10% rally in the S&P 500.

Historically, we’d see a lot – and I mean a lot – of “buying-the-rumor” around this time of year, the financial sector alone would usually rally around 8%.

But this year, traders haven’t been so eager.

Nobody is buying anything.

But that doesn’t mean you shouldn’t. From a sentiment perspective, this lack of “buy-the-rumor” activity is actually a good thing for two reasons…

Or two stocks, to be more specific.

These names stand to benefit the most from this low volume

Walmart and Amazon are Sinking, Buy These Retail Stocks Instead

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Earlier this week I presented the SPDR S&P Retail ETF (XRT) as one of my “best in breed” sectors for the next six months.

And today, we’re going to dive a little deeper. I’m going to tell you the top retail stocks to put your money in next week.

You see, powered by a bullish combination of re-opening and strong consumer activity, the retail sector is ripe with opportunities.

But we’ve got to remember that there are also some duds in this group.

Popular names like Walmart (WMT), Amazon (AMZN), Farfetch (FTCH), and even Etsy (ETSY) – which was one of my favorite retailers in 2020 – continue to see massive selling pressure.

Instead, my technical charts are showing me that seven other stocks stand to benefit the most from the current re-opening mania.

These seven stocks are the cream of the crop.

They are the absolute best retail stocks on the market right now.

Here are the seven best stocks of 2021

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