Suffice it to say that the Best Buy (BBY) warning the other day was a bit of a clarion call for retailers. I've rarely seen a stock in a solid uptrend reverse so suddenly and so severely except in asset bubbles. I would be careful about extrapolating these results across the whole of the retail sector, but I think that the run in retail stocks that we've seen since the middle of the year may have seen its best days.
The sell-off after April was largely based on the incorrect assertion that the consumer was going to lead us back into a recession or at least total stagnation. In absence of that occurring, retailers were largely undervalued. Playing retail as a group in that environment was sensible, but we are now entering a stage where one has to be quite selective. The easy money is definitely already made in this group.