U.S. consumers are showing big signs of stress again.
Not only are savings accounts being drained, but sky-high inflation is forcing many to tighten their wallets. Student loan repayments could force further tightening. Even earnings reports from some of the nation’s leading retailers tell us more Americans are spending more on just needs.
As a result, we’re starting to see discount retailers do a bit better.
After all, many perform well during times of economic stress, including Walmart, TJX Companies, and Costco to name a few. Even dollar stores, such as Dollar Tree should do well. Especially with company insiders jumping into the oversold dollar-store retailer. Director Daniel Heinrich, for example, just picked up 1,650 shares of DLTR for $173,650.
After diving from a high of about $155 to $106.45, DLTR has become severely oversold at support dating back to late 2021. It’s also over-extended on RSI, MACD, and Williams’ %R. From its current price, we’d eventually like to see DLTR refill its bearish gap around $145.