The stock market started out lower on Tuesday, October 9th, 2012 and it got worse throughout the day. When all was said and done the NASDAQ dropped well below its 20 day moving average, down 1.5%. Even though the market took a plummet today the bulls are still in charge as all three market indices are well above their 50 day moving averages. Some analysts feel a test of the 50 day moving average is necessary to hit new all time highs.
Just this morning many major media publications pointed out that the Dow Jones Industrial Average is getting very close to an all time high. It is often true that a quick pullback is needed to gain momentum to blast through any type of overhead resistance. It may very well be the case that it takes Black Friday sales in 2012 to get this market to new highs. This is not necessarily a bad thing because no market can go straight up.
There have been recent news articles illustrating the change of the consumer over the last few years. Some of these publications have even stated that Cyber Monday might outpace Black Friday in terms of total sales. This has yet to be determined but brick and mortar retailers may need to adjust their business strategy very soon. Some of the old fashioned brick and mortar retailers like WalMart, Walgreens and Target have adapted and they are now offering almost every single product through their web entity.
Coming out of the recession some retailers have seen their stock price accelerate higher by more than 200%. Remember the lows set in March 2009 were the lowest we have seen in decades so the gains may be overstated with the recovery. That being said, there are still many niche retailers that have reached out to their audience and they are seeing impressive month over month and quarter over quarter sales gains. Some of these retailers include Lululemon, Michael Kors and Autozone.