Keeping My Retail Stocks (GES, GME) On

In response to a couple of emails, I am still long Guess? (GES) and GameStop (GME). Both stocks are up nicely today as oil is now under $113 a barrel (cheap!) even with Russia's assault on Georgia.

Here's a chart showing the performance of the Retail HOLDRS (RTH) vs. crude over the past month:













I don't necessarily think that lower gas prices will automatically boost consumer spending and thus the fortunes of retailers, the rotation out of energy stocks into retail and financials could continue near-term if oil keeps falling. However, I'm definitely not adding to these positions as I'm not willing to buy on strength in this volatile, wacky market.