#PreMarket Recap: Retailers Continue To Trend Lower

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The Benzinga's #Premarket Prep hosts on Tuesday morning touched on Gold future's resistance around the $1,310 level.

Joel Elconin and Dennis Dick still single out Gold's blatant support level of $1,290.

The S&P 500 and Gold futures have been range bound lately and popular miner Barrick Gold (NYSE: ABX) has been under major pressure the past month.

Focusing on the equity market and the continuation of the less-than-celebration-worthy retail earnings season continues, the news from Home Depot (NYSE: HD) and Dick's Sporting Goods (NYSE: DKS) confirms the thesis that investors are punishing the sector as a result of missing Wall Street expecations for profit.

Reviewing the charts for SPDR S&P Retail ETF (NYSE: XRT) and the Market Vectors S&P Retail ETF (NYSE: RTH) shows the recent correction in retail continues; heading into the summer, J.C. Penney (NYSE: JCP) works to dump expensive and old inventory in an effort to restock its stores with clothing of lesser cost and higher customer desirability.

  • Dick's Sporting Goods (NYSE: DKS) was pushing the lower $45 handle in the pre-market on news the company earned $0.50 in Q1 versus $0.52 on $1.44 billion in revenue against consensus $1.46 billon, and the issuance of a cut to its FY'14 EPS outlook.
  • Elconin was avoiding the stock in the pre-market. The Tuesday morning low was $44.64, but the fade trade isn't from this level.
  • Home Depot's (NYSE: HD) $75 low print in the morning offers a bounce as $74.61 is the next level below $75. There was a supportive area around $75 and the trade may be to fade the gap from here up to $76.37. After that level, #Premarket Prep's eyes are on the April 15 low print of $74.61 and arre still looking at a long way to go before filling the gap to $76.37.
  • Lowe's (NYSE: LOW) will need to hold the $45.55 resistance level from Monday's close. The lower bound ranges over the past three or four low points is between $44.77 and $44.99, which if breached, will leave tradings waiting until $44.13 to find a new support region.
  • Staples (NASDAQ: SPLS) has given confirmation to the thesis of selling the retailers. Q1 reports shows $0.18 versus $0.21 expected and $5.65 billion in revenue against $5.62 billion expected.  The equity hit a pre-market low of $11.08. Traders should watch the $12.20 level.
  • Urban Outfitters (NASDAQ: URBN) hit a $34.03 pre-market low. The heavy trading around $34.50 is just above the May 7 low of $34.47. There is some head room until topping out at a resistance of $35.56.
  • Salesforce.com (NYSE: CRM) posts Tuesday night (watch for data to update on Benzinga's Earnings Calendar here) and was trading up in the pre-market resistance $54.21. Elconin liked the setup on the chart Tuesday morning. 
  • TJ Maxx (NYSE: TJX) reported a miss of $0.03, showing EPS for Q1 coming in at $0.64 in the face of expectations around $0.67.

Check out the video below for a recap of this morning's #PreMarket Prep trading ideas:

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