5 Retail Stocks Suffering Markdowns

These retailers are being dragged down by heavy selling

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5 Retail Stocks Suffering Markdowns

Home Depot (HD)

Home Depot (HD), which posted an epic rise in 2012, is rolling over after tracing out a double-top formation near $82 over the last few months.

HD chart 5 Retail Stocks Suffering Markdowns
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HD stock is vulnerable to the pressure building in the housing market amid the rise in long-term interest rates. Already, mortgage origination activity has crashed below 2008 financial crisis lows. Less transaction volume means less home renovation spending, which will pull HD down from its lofty valuation.

A return to the September low would be worth a near 10% decline from here.

Disclosure: Anthony has recommended AMZN put option positions to his clients.

Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters, as well as Mirhaydari Capital Management, a registered investment advisory firm.


Article printed from InvestorPlace Media, http://investorplace.com/2014/03/5-retail-stocks-suffering-markdowns/.

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