Dick’s Sporting Goods has been running. Now, after a brief pause, it may be ready to keep moving.
The first interesting pattern on the daily chart is the price gap on May 26, which DKS recently tested (and partially filled). That resulted from a blowout quarterly report, with same-store sales up 115 percent.
Notice how price came down to test and hold the May 10 peak and the rising trendline that began in December. DKS also came within $0.44 of testing its 50-day simple moving average (SMA) that session, but couldn’t even get that low.
A mix of powerful forces are fueling the rally. Like many traditional retailers, DKS was left for dead even before the pandemic. But now it’s rebuilding its business around experiences and benefiting as the economy reopens. There’s also a short squeeze underway.
Something else happened with the intermarket trends: The SPDR Consumer Discretionary ETF just crossed above its 50-day SMA. This suggests the broader consumer discretionary sector (which includes DKS) is coming to life as the summer heats up. Of course, summer is followed by-back-to-school, which is followed by Black Friday and Christmas. That timeline, combined with an improving economy, could keep sentiment focused on traditional retailers for several more months.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
The first interesting pattern on the daily chart is the price gap on May 26, which DKS recently tested (and partially filled). That resulted from a blowout quarterly report, with same-store sales up 115 percent.
Notice how price came down to test and hold the May 10 peak and the rising trendline that began in December. DKS also came within $0.44 of testing its 50-day simple moving average (SMA) that session, but couldn’t even get that low.
A mix of powerful forces are fueling the rally. Like many traditional retailers, DKS was left for dead even before the pandemic. But now it’s rebuilding its business around experiences and benefiting as the economy reopens. There’s also a short squeeze underway.
Something else happened with the intermarket trends: The SPDR Consumer Discretionary ETF just crossed above its 50-day SMA. This suggests the broader consumer discretionary sector (which includes DKS) is coming to life as the summer heats up. Of course, summer is followed by-back-to-school, which is followed by Black Friday and Christmas. That timeline, combined with an improving economy, could keep sentiment focused on traditional retailers for several more months.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
