I’m sure we’ve all heard the news that retail sales dropped 1.1% in July, a much larger dip than the 0.3% decline Wall Street analysts expected.
It’s likely that the delta variant might have changed people’s spending habits.
Tuesday’s report revealed that spending fell in stores that sell clothing, furniture and sporting goods. I mean, even online sales have started to stall, falling 3.1% from a month before. But at restaurants and bars, spending still rose about 2%.
Now, before you draw the conclusion that I’m bearish on all retail stocks, that’s not the case. I’m still fairly bullish on the large-cap retailers I mentioned Monday.
But I do know of some retail stocks that’ll make great short side trades…
2 Great Short-Side Trades to Make Now
Nordstrom Inc. (NYSE: JWN) is a great short-side trade to make right now.
It’s a fashion specialty retailer that offers compelling clothing, shoes, accessories and much more to men, women and children.
The company has lost over $690 million in the past year, with $160 million of that being in just the past quarter!
JWN is technically trading below its 200-day moving average, with the 50 DMA about to cross toward the downside.
And in the chart above, you’ll notice that the stock has made three lower highs, so we’re definitely in store for a big breakdown.
Get it?
I have a short-term price target of $24 per share because there’s a good chance this stock will fall sharply next quarter.
Check out my short video below to learn more about these great short side trades and why you should get in on them now!
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P.S. Every single day, right around 3 o’clock on the East Coast, a stock market anomaly forces Wall Street to start bleeding cash…
Giving everyday traders the opportunity to make consistent overnight returns!
This 3 p.m. “Burn Window,” as Joy of the Trade Head Trader Jeff Zananiri calls it, allows anyone to buy low and sell high just 18 hours later. In fact, Jeff has already used this strategy to bag dozens of overnight winners for his readers.
Now he’s getting ready to reveal exactly why these massive profit opportunities happen — and how anyone can start taking advantage of them right away.
