A lot of stocks in the retail sector are showing relative strength compared to others in the market. If you take a look at DECK and LULU you will see the same stregnth recognized in the UA chart. With money flowing into the consumer discretionary sector and Russel 2000 holding strong this year, it is hard to believe that the market will just crash, burn, and rollover. However, the market is at overbought levels and should get some type of pullback. I am still a buyer on dips in strong stocks and a shorter of overbought stocks. I have tried some May 80x Puts on RIG as I think it could breakdown, but the oil strength is making me a bit uneasy. I put the trade on Friday, but if RIG fails to break I will exit those with a small loss and look to play some of these sectors primed to breakout or just breaking out.
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