This morning the government reported stronger than expected sales data for July — .8% against estimates of .3%. The day also saw strong earnings news from Saks (SKS) and Home Depot (HD), netting bulls decent profits. With more high-profile merchants set to report later this week, Breakout welcomes OptionMONSTER.com's Jon Najarian to help find the best way to play.
For starters, Najarian suggests sticking to the soft-lines. Home Depot is working for investors today, but Najarian thinks consumers on a budget are going to focus their discretionary spending on getting the kids dressed to go back to school. He says the options markets are showing the most bullish action in two names: Walmart (WMT) and Gap (GPS).
After more than a decade spent marking time, WMT finally broke above $70 this year, a level that had marked a ceiling since 1999. The discount king is up more than 20% so far in 2012, but Najarian says the market is looking for more. Specifically he sees traders selling just out ofRead More »from Gap and Wal-Mart Are the Ways to Play Retail: Najarian