US retail stocks have rallied due to a sharp decline in oil prices and the optimism that this news brings. Wentworth, Hauser and Violich’s Patty Edwards comments in this article. It read:

“‘The people who have been taking the money out of oil have to go somewhere, and these stocks are cheap, cheap, cheap,’ said Patricia Edwards, retail analyst at Wentworth, Hauser and Violich.”

“’Everything that is coming off the bottom is coming off the bottom because the consumer while at least have a bit of breathing room,’ Edwards said, while adding that the consumer is still likely to remain cautious.”

“Investors had also taken big short positions in many retail stocks, betting that the stocks would fall further, she said.”

“If you are taking your short bet off retail, all of them are going to rally,’ Edwards said.”

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