It looks like this may be shaping up to be a slow Christmas season for numerous reasons. In summary, it seems as though the average U.S. consumer is tapped due to the recent problems in the housing sector, among others. That brings me to the obvious question: What's the best way to play a slow Christmas for the retailers? Today I went long some of the UltraShort Consumer Goods ProShares ETF (SZK). If you take a look at the chart, the Dow Jones Consumer Goods Index has been on a strong uptrend and I don't see how this is sustainable. Please correct me if my thinking is flawed. Any other ideas on the best ways in the market to play a slow quarter for the retailers?
You could short-sell the big-box, mainstream retailers and go "long" with the upper-crust retailers. Wealthy people spend a lot of money at posh stores while the WalMarts of the world cut prices in order to maintain sales.