Lingering Issues Continue for Retail ETFs

On the other hand, economists and investors waiting on wage growth to catch up to the boom. When the economy is at full employment, wages grow about 3% to 3.5% per year, but wages are only rising 2.5% so far.

Related: Amazon in Focus for Retail ETFs

“Retail sales have even produced declines on several occasions. As such and given the surmounting headwinds for retailing in the United States, I believe that a near-term dead cat bounce in the XRT is a selling opportunity and not a buying opportunity. Shares may become over extended beyond $42 for which may be presented an opportunistic short trade,” according to Seeking Alpha.

For more news and strategy on the Retail ETF market, visit our Retail category.