For a good period of time this year we kept hearing the phrase "Blame
it on the weather," as the excuse for soft retail sales. Even though
the broad market isn't up a ton in the first five months of the year (up
5%), retail has lagged (Down 3%), see chart below.
As you can see, buyers have stepped into Dollar Tree (DLTR) after resistance was taken out. Carl Icahn seems to think Family Dollar (FDO) is undervalued, as he has announced this morning he has established a large stake in the company (see article here).
If XRT breaks resistance of this small pennant pattern, odds increase it will bring in new buyers, similar to what took place in DLTR!
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