October is supposed to be the most wonderful time of the year for merchants. Holiday merchandise has been purchased and stores are being staffed, making retailers one of the only groups dishing out jobs in a horrible economy. There's nothing else for the stores to do but bide their time until they can roll out the plastic trees, spray on the fake snow, and get ready to crack open the doors for the Black Friday stampede.
At least that's how it's supposed to happen. This year the retailers are reeling from higher cost of goods, an atrocious economy, and tough comparable sales from 2010's relatively cheery season.
With September's same-store sales data set to be reported on Thursday, it's time for traders to make their lists for stocks to buy, and possibly short, into the holidays. To help me do so Breakout welcomed Brian Sozzi, research analyst with Wall Street Strategies.
Retail headwinds aren't lost on Sozzi, who's "not sure much is going to work," at least in terms of the stores themselves. His first instinct is to avoid the entire idea of retailers and lunge towards the goods lining the shelves by "playing the brands."Read More »from Ho, Ho, Woe: No Love for Retail Stocks this Holiday Season